Tensions just snapped. China has issued its sharpest warning yet in response to President Donald Trump’s threat to slap an additional 50% tariff on all Chinese imports, vowing to “fight to the end” in what’s rapidly escalating into a full-blown trade war with global consequences.

“If the United States insists on continuing its extreme pressure, China will fight to the end,” a spokesperson for the Ministry of Commerce said in a statement published by the Financial Times on Monday.

Retaliation Incoming

Beijing officials said the government is preparing “unrestricted countermeasures,” signaling new tariffs, export bans on rare earths, and potentially moves targeting American multinationals operating in China.

The warning came just hours after Trump floated the idea of hiking his already punishing 34% tariff on Chinese goods to a staggering 50%, declaring that China “needs to be taught a lesson.”

“They’ve been cheating us for 30 years. We will end it now or never,” Trump told supporters during a campaign-style speech in Florida.

Market Fallout Deepens

  • The Shanghai Composite plunged 4.6% on Tuesday, wiping out nearly $700 billion in value.
  • U.S. futures fell sharply, with the Dow and S&P 500 signaling another negative open.
  • Copper, semiconductors, and luxury goods — all reliant on China demand — tumbled.

China Rallies Support

Beijing is calling on developing nations and trade partners to “reject economic coercion” and resist what it called “U.S. neo-protectionism.” Diplomats from Brazil, Indonesia, and the African Union reportedly met with Chinese officials in an emergency session late Monday.

State-run media ramped up nationalist rhetoric, calling Trump’s tariffs a “declaration of economic war” and vowing that “China will not repeat the mistakes of the past.”

‘No Plan to Back Down’ – Trump Allies

Despite China’s fury, Commerce Secretary Howard Lutnick confirmed Tuesday that the administration has “no plan to back down” and that the tariffs are “non-negotiable until Beijing commits to structural change.”

“This is about national security, not just economics,” Lutnick told CNBC. “Trump will hold the line.”

What’s Next?

The additional 50% tariff could be announced as early as next week, sources familiar with the White House strategy told Finblog. China is expected to respond immediately, with speculation growing about possible restrictions on U.S. tech firms, a ban on Apple iPhones in government offices, or moves to cut Boeing orders.


The world’s two largest economies are now locked in a dangerous standoff, with no clear exit ramp. If neither side blinks, analysts warn the standoff could soon tip the global economy into recession — or worse, a long, grinding trade cold war.

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