China has vowed to take “all necessary measures” to protect its economic interests after the United States imposed a fresh 25 percent tariff on steel and aluminum imports, further escalating tensions in an ongoing trade dispute.
The tariffs, which took effect early Wednesday, mark a significant new phase in the trade battle between the two largest economies. Beijing has condemned the move as a violation of global trade rules and a setback for international economic stability.
“China has always believed that protectionism offers no way out and that there are no winners in trade wars and tariff wars,” said Chinese Foreign Ministry spokeswoman Mao Ning at a daily press conference. She criticized Washington’s actions as a serious breach of World Trade Organization (WTO) rules that harm the multilateral trading system.
“China will also take all necessary measures to safeguard its legitimate rights and interests,” Mao added, signaling potential retaliation.
The latest tariffs, imposed under an executive order signed by US President Donald Trump, are part of a broader strategy to curb what Washington sees as unfair trade practices by China. The duties specifically target steel and aluminum imports, two key industrial materials that the US claims Beijing has been overproducing and exporting at unfairly low prices.
Although China is the world’s largest steel producer, it is not a major supplier of steel to the US. However, American officials argue that China’s steel output contributes to global overcapacity, which in turn depresses prices and undermines US steelmakers.
Trump’s decision to increase tariffs on steel and aluminum follows an earlier hike this month, in which he raised duties on all Chinese imports from 10 percent to 20 percent. That move prompted swift retaliation from Beijing, which imposed countermeasures on US agricultural exports, including soybeans and pork.
China has not yet announced specific countermeasures in response to the latest tariffs, but its previous retaliatory actions suggest it could target politically sensitive sectors of the US economy, particularly agriculture and technology.
Beijing has a history of responding forcefully to US trade actions. After Trump imposed tariffs on $200 billion worth of Chinese goods in 2018, China responded with tariffs on American farm products, hitting key Trump-supporting states in the Midwest.
This time, analysts expect Beijing to take a similar approach, possibly expanding restrictions on US agricultural imports or targeting American companies operating in China. The Chinese government could also delay approvals for US businesses or tighten regulations on American tech firms, which rely on Chinese manufacturing and supply chains.
Chinese state media has echoed the government’s tough stance, warning that Washington’s actions will ultimately hurt American consumers and businesses. In an editorial, the state-run Global Times accused the US of “reckless economic aggression” and warned that China would “not sit idly by as its interests are harmed.”
The deepening trade dispute is likely to have significant economic repercussions for both countries and the global economy. Tariffs typically lead to higher costs for manufacturers and consumers, disrupt supply chains, and create uncertainty in financial markets.
US industries that rely on steel and aluminum imports—including automotive, construction, and manufacturing—could see production costs rise. In previous trade disputes, American businesses have warned that higher tariffs make it harder to compete internationally, potentially leading to job losses.
At the same time, US farmers remain among the hardest-hit groups in the ongoing trade war. China is a major buyer of US agricultural products, and Beijing’s retaliatory tariffs have already reduced American exports of soybeans and pork. If China further restricts imports, it could deal another blow to US farmers, many of whom have already suffered from previous trade disputes.
Global markets have reacted cautiously to the news. Stock indexes in Asia and Europe saw minor declines following the announcement, as investors feared a prolonged trade conflict. Analysts warn that escalating tensions between the US and China could slow global economic growth, especially if other countries get drawn into the dispute.
China’s criticism of the US tariffs as a violation of WTO rules raises the possibility of a legal challenge. Beijing has previously taken the US to the WTO over trade disputes, arguing that unilateral tariffs undermine the international trading system.
The WTO has ruled against some of Trump’s previous tariffs, but the US has dismissed those decisions and continued imposing trade barriers. Washington argues that its tariffs are justified under national security concerns—a claim that has been widely disputed by trade experts.
If China formally challenges the new steel and aluminum tariffs at the WTO, it could trigger a lengthy legal battle. However, with the WTO’s dispute resolution system currently weakened due to US opposition to appointing new judges, any resolution could take years.
Trump’s hardline trade policies have been a cornerstone of his economic agenda, particularly as he campaigns for re-election. His administration has framed the tariffs as a necessary step to protect American jobs and industries from foreign competition.
However, the trade war has been politically risky. While it has won support from some domestic manufacturers, it has also faced backlash from industries that rely on global trade. Farmers, in particular, have suffered due to retaliatory tariffs, leading Trump to authorize billions of dollars in aid to offset their losses.
With the US presidential election approaching, the economic impact of the trade war could play a crucial role in shaping voter sentiment. If tariffs lead to higher consumer prices or job losses, they could become a liability for Trump’s campaign.
The latest tariffs indicate that tensions between the US and China are far from over. While both sides have previously signaled openness to negotiations, recent developments suggest that a resolution remains unlikely in the short term.
If China follows through with retaliatory measures, the trade war could escalate further, with additional tariffs or economic restrictions on the horizon. For now, businesses, investors, and consumers will be watching closely to see how Beijing responds—and whether diplomatic efforts can prevent further economic damage.
