China has threatened additional retaliatory measures if President Donald Trump follows through on his warning to increase tariffs on Chinese goods by an additional 50 percent. This comes after China implemented a blanket 34 percent tariff on American goods, matching Trump’s “Liberation Day” tariff on Chinese imports.

Newsweek reached out to the White House via email on Monday for comment.

Why It Matters

The escalating trade conflict between the world’s two largest economies has already caused ripple effects across global markets and trade networks. America’s decision to use trade penalties to address geopolitical and security issues, including allegations of Beijing’s involvement in the fentanyl crisis, has drawn criticism for bypassing traditional diplomatic channels.

Financial markets have already reacted, with Chinese markets in Hong Kong and Shanghai experiencing sharp losses.

What To Know

In a statement obtained by The Wall Street Journal, China’s Ministry of Commerce declared it “will resolutely take countermeasures to safeguard its own rights and interests” if the United States escalates tariffs further.

The current conflict began with Trump’s declaration on April 2, which marked the implementation of the 34 percent tariffs on Chinese goods.

This came on top of two earlier rounds of 10 percent tariffs implemented in February and March. In response, China has suspended imports of several American agricultural products and restricted exports of rare earth elements crucial for high-tech manufacturing. Despite the growing tensions, Chinese officials recently met with U.S. corporate leaders, including executives from Tesla and GE Healthcare, potentially opening an avenue for de-escalation.

What People Are Saying

Lin Jian, China’s Foreign Affairs spokesperson, said: “The U.S. is seeking hegemony in the name of reciprocity, sacrificing the legitimate interests of all countries to serve its own selfish interests, and prioritizing the U.S. over international rules,” he said.

He continued: “The abuse of tariffs by the United States is tantamount to depriving countries, especially those in the Global South, of their right to development.”

Trump defended his approach on Truth Social, writing: “Oil prices are down, interest rates are down … there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.” He blamed previous U.S. leadership for allowing China to “take advantage of the Good OL’ USA.”

What Happens Next

While no direct meetings between Chinese President Xi Jinping and Trump have been confirmed, the tariff dispute is expected to feature prominently in coming international forums. Beijing is pursuing its case through the World Trade Organization (WTO) while signaling readiness for a prolonged confrontation.