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China Strikes Back at US Tariffs – Yet Keeps the Door Open for Dialogue

China Strikes Back at US Tariffs – Yet Keeps the Door Open for Dialogue
  • Will Donald Trump and Xi Jinping Sit Down for Talks?


China Strikes Back on Tariffs – But Keeps the Door Open for Talks

“China will fight to the bitter end in any trade war,” declared Beijing’s foreign ministry spokesperson, following China’s latest counterstrike—new tariffs on US agricultural imports.

The move came just minutes after a fresh 10% US levy on Chinese goods took effect on Tuesday, adding to an already long list of tariffs from both Trump’s first term and last month’s announcements.

Yet, China’s response is strategic—it’s a calculated opening move rather than an all-out offensive. While the tariffs demonstrate strength and have the potential to sting key sectors of the US economy, they also leave room for negotiation or further escalation.

“We advise the US to abandon its bullying stance and return to the path of dialogue and cooperation before it’s too late,” warned foreign ministry spokesperson Lin Jian.

This marks the second tariff exchange between the two nations since February, but this time, China has hit where it could hurt the most—Trump’s core supporters: American farmers.

A staggering 78% of farming-dependent counties backed Trump in 2024. With China being a major buyer of US agricultural products like chicken, beef, pork, and soybeans, the newly imposed 10-15% tax—set to take effect on March 10—could put pressure on the Trump administration.

“These tariffs will negatively impact US agricultural markets and put downward pressure on prices,” said Ole Houe of Ikon Commodities. “There’s enough global supply for China to shift purchases elsewhere. It’s the US that will feel the squeeze, as 30% of its soybeans still go to China.”

While the threat of a full-blown trade war looms between the world’s two largest economies, China’s messaging is clear:

1️⃣ It is ready to fight. “Pressure, coercion, and threats are not the way to deal with China,” stated Lin.

2️⃣ But it is also open to negotiation.

Unlike the aggressive 25% tariff hike China imposed on US soybeans in 2018, this time, Beijing is showing restraint. “China’s tariffs remain below 20%—this is deliberate,” said Trivium China analyst Even Pay. “The message is clear: they want de-escalation, not escalation.”

Last month, the White House suggested a potential call between President Xi and Donald Trump, but that never happened.

So, the big question remains: Will talks finally take place? And if they do—who will make the first move?


China Strikes Back at US Tariffs – Yet Keeps the Door Open for Dialogue
  • The new 10% US tariff on Chinese imports, which took effect on Tuesday, poses a significant challenge for Beijing

China Holds Its Ground – But Watches for Openings

Beijing is in no rush to make the first move. It has no interest in appearing subservient to Washington.

Unlike Canada and Mexico, China has not introduced new measures to curb fentanyl trafficking. Instead, it has reiterated its long-standing stance: fentanyl is America’s problem, and China already upholds some of the world’s strictest drug policies.

On Tuesday, the State Council released a White Paper titled “Controlling Fentanyl-Related Substances – China’s Contribution.”

The document details Beijing’s existing efforts to combat fentanyl-related crimes and restrict the flow of precursor chemicals. It also underscores China’s commitment to international drug control obligations.

So, while Beijing has yet to pick up the phone to Washington, this report serves as a clear message: we are already doing our part on fentanyl.


Economic Pressures Mount

Despite its firm stance that China “will not yield,” the latest US tariffs will undoubtedly hit hard.

The cumulative 20% tax on Chinese goods adds to the barrage of tariffs Trump imposed during his first term, targeting tens of billions of dollars’ worth of Chinese exports. Meanwhile, China’s economy is already facing headwinds.

This week, thousands of delegates are convening in Beijing for the country’s annual parliamentary session, with economic concerns front and center.

  • House prices are still tumbling.
  • Youth unemployment remains alarmingly high.
  • A trade war with the US could further dampen consumer confidence at a time when the Communist Party needs people to spend to fuel economic growth.

Yet, Beijing sees an opportunity amid the chaos Trump is stirring among his international allies.


Turning the Tables on Washington

If China’s economic troubles deepen, it has a convenient scapegoat—Washington. The narrative is already taking shape: any downturn in China’s economy is not a result of internal mismanagement, but of American aggression.

State media outlet Xinhua has seized on this, rolling out a series of parodies mocking the United States for taxing even its closest allies and neighbors. The skits paint Washington as a bully, echoing the growing frustration from Canada and Mexico.

Meanwhile, China’s Commerce Ministry has reiterated its willingness to collaborate with other nations to counter Trump’s tariffs. Beijing is quietly seeking potential allies in this trade standoff, while casting Washington as an unpredictable troublemaker—one willing to turn on friends and foes alike.

At the same time, Trump’s “America First” agenda is unsettling many in Europe and the UK, forcing them to question whether the US-led world order is already beginning to fracture.

China, ever watchful, is prepared to exploit that uncertainty.


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