An aerial perspective shows the Xiasha Container Terminal located near a canal in Hangzhou, Zhejiang Province, on April 6, 2025. On Tuesday, Chinese officials declared their intention to “fight to the end” against the United States following President Donald Trump's warning of additional tariffs. The Chinese Commerce Ministry denounced what it described as "so-called 'reciprocal tariffs'" from the U.S., labeling them as unjustified and a blatant example of unilateral bullying.

As tensions rise, the ministry indicated that China's prior retaliatory tariffs were merely the beginning and hinted that further actions may be forthcoming. They emphasized that these countermeasures are aimed at protecting China’s sovereignty and interests while ensuring normal international trade practices. The statement condemned the U.S. threat to escalate tariffs as a significant misstep, asserting that China would resist such pressure without exception.

Trump's tariff threats have reignited fears of a trade conflict that could disrupt the global economy. Stock exchanges, including those in Tokyo and New York, have become increasingly volatile due to the deteriorating situation. The president stated that if China does not retract its previously implemented 34% tariff increase by April 8, 2025, additional tariffs would be enforced, bringing the total tariffs on Chinese imports to an alarming 104%.

These new tariffs, imposed alongside previous tariffs related to issues like fentanyl trafficking, pose a risk of rising consumer prices in the U.S. Furthermore, they may prompt China to strengthen trade relations with alternative partners, particularly within the European Union, as it seeks to offset the impact of U.S. sanctions.

Trump has maintained confidence throughout his presidency regarding stock market performance, yet the current economic environment challenges this narrative. While he accepts short-term pain for potential long-term benefits, market responses suggest that his administration's tactics have fostered uncertainty rather than reassurance.

Federal Reserve Chair Jerome Powell noted that increased tariffs could lead to higher inflation, signaling a careful approach in forthcoming economic decisions. Meanwhile, European Commission President Ursula von der Leyen highlighted the EU's intent to diversify trade relationships, pointing to promising opportunities outside of the United States. The scale of trade between the U.S. and China was significant, with a recorded $582 billion in goods for 2024, further complicating the economic landscape amid these escalating tariff issues.