Heaptalk, Jakarta — Following U.S. President Donald Trump’s warning about imposing an additional 50% tariff, China firmly refused to withdraw its 34% retaliatory duties, as reported by Reuters (04/08). China has declared it will fight to the end in this global trade war, which was triggered by Trump’s massive import tariffs announced in early April.
“The U.S. side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature. If the U.S. insists on having its way, China will fight to the end,” stated China’s Ministry of Commerce, as quoted by Reuters (04/08).
Chinese manufacturers, from tableware to hardwood flooring producers, have reportedly begun issuing profit warnings. Many are rushing to plan new factories overseas and are forced to explain pricing adjustments to customers due to the impact of U.S. import tariffs.
China’s Ministry of Commerce issued this statement in response to Trump’s warning of an additional 50% tariff, resulting in a 104% import tariff. If China withdraws the 34% retaliatory tariff, the extra tariff will be enforced starting Wednesday (04/09).
Global stock markets start recovering
Reuters noted that global stock markets recovered after a sharp decline following Trump’s initial tariff announcement. Japan’s Nikkei index surged 6% on Tuesday, rebounding from a 1.5-year low after Trump and Japanese Prime Minister Shigeru Ishiba agreed to begin trade negotiations.
China’s blue-chip stocks rose 1%, partially recovering from Monday’s (04/07) 7% plunge. Hong Kong’s Hang Seng Index jumped 2% after its worst trading day since 1997. European and U.S. markets also indicated a more substantial opening, while global oil prices rebounded after a significant sell-off.
However, Indonesia’s market took a hit. The stock index plummeted 9%, and the rupiah hit a record low as trading resumed after a long holiday. Bank Indonesia pledged to intervene, joining global central banks’ efforts to curb market panic.
