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China prepares for prolonged trade conflict after US tariff hike

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China prepares for prolonged trade conflict after US tariff hike

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Chinese authorities are outraged by the tariff policy of United States President Donald Trump. To their dismay, the American leader began his term with a new escalation in the US–China trade war. In Beijing, the move is viewed as both aggressive and unjustified.

According to The Wall Street Journal, China had been aiming for a broad trade agreement with Washington. However, those hopes were dashed when the United States imposed a sweeping 34% tariff on Chinese goods. In response, Beijing walked away from negotiations and began preparing a strong counteroffensive. The battle is now in full swing, with sparks flying.

On April 2, President Trump announced new tariffs affecting 183 countries, including China. He accused trade partners of "unfair practices" and "non-market behavior." The backlash was swift. On April 4, China retaliated by matching 34% tariffs on all US imports. It is an unmistakable signal of escalation.

Sixteen American companies have already been affected, including drone manufacturer Skydio. Six firms lost export access to the Chinese market, while eleven others were added to a list of "unreliable partners." In addition, Beijing is preparing new restrictions on the export of strategically critical rare earth metals.

Analysts at The Wall Street Journal warn that the absence of dialogue between the world’s two largest economies increases the risk of a prolonged conflict. What is unfolding is a tit-for-tat pattern that undermines the prospects for meaningful negotiations and fuels greater volatility in global trade.

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