In a strongly worded statement, China’s Ministry of Commerce condemned the recent move by the United States to impose additional tariffs, labeling it as a unilateral act that violates global trade rules. The U.S. decision, announced under the administration of President Donald Trump, includes a proposed 50% increase in tariffs on a wide range of Chinese imports, reigniting fears of a renewed trade war.

China urged the United States to approach differences with “mutual respect and constructive dialogue,” emphasizing that cooperation remains the only viable path forward. However, the ministry made it clear that if the U.S. continues to escalate the situation, China is fully prepared to respond with strong countermeasures.

Recently China wasted no time in responding. As a countermeasure, it imposed a 34% tariff on a broad list of U.S. goods, significantly escalating the standoff. The Chinese Commerce Ministry reiterated its stance that dialogue and cooperation are the only viable solutions and called on the U.S. to return to the negotiating table.

“China will not bow down to tariff threats,” the ministry declared. “If the U.S. continues to escalate, we will fight to the end to defend our rights.”

The impact was immediate and dramatic. The Chinese stock market experienced its worst trading day since the 2008 financial crisis, plunging sharply as investor confidence crumbled. U.S. markets followed suit, suffering a single-day loss of 6%, one of the steepest drops in recent years. Analysts warn that the ongoing tit-for-tat could destabilize global supply chains and lead to prolonged economic uncertainty.

As both sides harden their positions, concerns are rising across the business world. With no clear path to resolution in sight, economists caution that the ripple effects could extend far beyond the two nations, potentially dragging down global growth.

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