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SCMP Reporters

This live blog has been made freely available as a public service to our readers. Please consider supporting the SCMP’s journalism by subscribing. New users who download our updated app get a seven-day free trial.
China’s Ministry of Commerce held a briefing at 3pm today, just hours after US President Donald Trump declared a trade war with the world.
The action includes a further 34 per cent tariffs on imports from China, raising American tariffs on China to 54 per cent.
In a statement on Thursday morning, the ministry accused the US of “typical unilateral bullying” and vowed to take resolute countermeasures. It also said Beijing would urge Washington to remove the tariffs and solve disputes through dialogue.


More from our reporting:
- Trump announces new US tariffs of at least 10% on all imports
- China vows to retaliate after ‘bullying’ US imposes 34% reciprocal tariffs
- China-US summit hopes fade as Trump goes hard on tariffs, Taiwan, upending detente: analysts
- China woos the neighbours, with Xi Jinping said to be planning 3-country tour in April
Reporting by Jane Cai, Kawala Xie, Carol Yang, and Siqi Ji


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US-China trade war

China slams US ‘protectionism’ but stops short of attack on Trump’s tariffs – as it happened

Beijing has described US President Donald Trump’s tariff scheme - including a new 34 per cent tariff on China - as “typical unilateral bullying”. Photo: AFP

News

China

Diplomacy

China says trade and tariff wars have no winners, and trade concerns will be resolved through ‘equal dialogue’


China says trade and tariff wars have no winners, and trade concerns will be resolved through ‘equal dialogue’.


Donald Trump

World Trade Organization (WTO)

US-China trade war: All stories

China tariffs

Trade

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Live

The Chinese Ministry of Commerce’s press conference came as the US announced at least 10 per cent reciprocal tariffs on Wednesday against most of the US trade partners he accused of “ripping off” the US for years, resulting in trade imbalance.
China will now face the highest US tariffs following Wednesday’s announcement – 34 per cent in reciprocal tariffs, including a 10 per cent baseline tariff, plus 20 per cent in blanket tariffs already announced in the past two months which Trump said were aimed at curbing the flow of fentanyl to the United States.
Together China will now face 54 per cent of tariffs on all its exports to the US. The 10 per cent baseline tariff will go into effect on April 5, while the rest of the 24 per cent will take effect on April 9.
Chinese steel, aluminium and vehicles already face 25 per cent tariffs from the US and will not be subject to the new tariffs.

On Wednesday, the White House also announced that duty exemptions for low-value shipments worth less than US $800 from China - under the “de minimis” rule – will end on May 2.
The change is expected to have a significant effect on low-cost shipments from mainland China and Hong Kong, particularly those from e-commerce giants such as Temu and Shein.
Trump has claimed that the tariffs against China will be able to address China’s “unfair” trade practices, such as alleged intellectual property theft and the trade deficit between the two nations, which stood at around US$300 billion in 2024, down from a peak of US$418 billion in 2018, as well as bringing back manufacturing to “reindustrialise” the US.


Trump’s tariffs

To understand more about the effective tariff rate on China, try this explainer.




Tariffs explained

The Chinese yuan and stock markets tumbled after the announcement of the new tariffs.
By midday on Thursday, Hong Kong’s Hang Seng had lost 1.94 per cent to 22,748.29, while the Shanghai Composite Index edged around 0.43 per cent lower, to 3,334.58.
Tokyo’s Nikkei 225 dropped 3 per cent, touching an eight-month low. South Korea’s KOSPI index is trading at 2,485, down 0.8 per cent from the previous day, recovered from more than 2.7 per cent fall in the morning.
Major Asian economies moved to prepare for possible shocks to financial markets and the economy.
Japan is going to announce its reaction to the tariffs and Singapore’s monetary authority has suggested that it is prepared to curb excessive movement of the Singapore dollar.
Vietnam will set up special task force on tariffs.



Market reaction

Chinese state media has held back from lashing out at the US over the latest tariffs, with most outlets simply carrying the Ministry of Commerce’s earlier statement word for word, with no opinion piece attached.
People’s Daily, the mouthpiece of the Communist Party, published a commentary on Thursday saying the whole world was against the tariffs.
“The escalation of trade protection measures will wreak havoc on the global order of free trade and the stability of supply chains, exacerbating the uncertainties of the world economy,” it said, quoting foreign officials and analysts.
It stopped short of mentioning China’s position.


State media reacts

Following Trump’s announcement of reciprocal tariffs, the Chinese Ministry of Commerce says China will retaliate to protect its national interests, while condemning the move as “an act of bullying”.
China has already implemented retaliatory measures for the 20 per cent tariffs Trump announced in the last two months.
Beijing has imposed 15 per cent tariffs on coal and natural gas from the US, and levied 10 per cent duties on petroleum, agricultural equipment, high-emission vehicles and pickup trucks, as well as 10 to 15 per cent tariffs on US agricultural products.
Apart from retaliatory tariffs, Beijing also put more US companies – including American clothing company PVH which owns Calvin Klein – on its entity and export control lists. It also added some critical minerals, including tungsten, tellurium, bismuth, molybdenum and indium, to its export control list.
Meanwhile, Beijing lodged a formal dispute at the World Trade Organization. It also began trade investigations into US tech giant Google, as well as US optical-fibre products.


China’s earlier retaliation

The Ministry of Commerce press conference has started, with reporters watching closely for any measures to counter the US tariffs.



Briefing begins

The first question is about China’s efforts to attract foreign investment.
Ministry spokesman He Yadong says China will expand high-quality opening up to foreign investors, implementing favourable policies sooner rather than later.
It will open a variety of sectors wider, including cloud computing, biotech, culture and education and telecom services, He says.


Foreign investment

Foreign direct investment (FDI) in China has fallen sharply since 2023 as investors remain wary of China’s slowing growth and strained ties with the US.
It fell by 27.1 per cent last year, the sharpest decline the country has recorded since the 2008 global financial crisis.
FDI fell further in the first two months of this year, down 20 per cent year on year.
China’s top leadership has been keen to stabilise foreign investment to revive the economy in recent years. Chinese President Xi Jinping met representatives from the international business community on Friday, marking the latest effort to reassure foreign investors.



A spokesman for China’s Ministry of Foreign Affairs, Guo Jiakun, says China firmly opposes the US imposing so-called reciprocal tariffs and that the move violates WTO rules.
At a regular ministry press conference, Guo says China will take necessary measures to defend its legitimate interests.



Tariff move ‘violates WTO rules’: foreign ministry

The next question to the Commerce Ministry’s spokesman is on the significance of the China-Japan-South Korea minsters’ meeting.
He says the economic meeting between China, Japan, and South Korea in late March had “important significance” against the backdrop of “unilateralism and protectionism”.
“This reflects the resolute determination of the economic departments in the three nations to deepen their economic cooperation and push forward regional economic cooperation amid the increasing economic uncertainty and stability in the world,” he says.
The meeting also paves the way for a trilateral summit this year, he says.


Trilateral summit

The new tariffs announced by Trump could further complicate US-China relations, which has already been strained by issues such as fentanyl and Taiwan.
Trump appeared to be eager to host a summit with Chinese President Xi Jinping, expressing his interest in meeting the Chinese leader soon despite the tensions between the two nations.
Last month Trump said Xi would visit the US in the “not too distant future” – something Beijing has not confirmed.
And many observers now see hopes for the summit dimming, as the US continues tariffs and tech export controls against China.



Summit prospects

Vietnam and Cambodia are Southeast Asian nations hardest hit by Trump’s tariffs, slapped with 46 per cent and 49 per cent respectively. Vietnam called an emergency cabinet meeting following Trump’s announcement, according to Vietnam Plus.
Vietnam and Cambodia, along with Malaysia, are the three stops on Chinese President Xi Jinping’s Southeast Asia trip this month, the Post has reported, with Vietnam and Cambodia strategically important to China as Beijing and Washington compete for greater influence in the Indo-Pacific.
Vietnam is a major manufacturing hub and an alternative supply chain destination as companies diversify away from China because of US trade tensions. Cambodia has long been a major destination for China’s belt and road investments.
Japan, which was hit by a 24 per cent tariff, called Trump’s tariffs “extremely regrettable”, with Prime Minister Shigeru Ishiba ordering ministers to respond. South Korea faces a 25 per cent tariff. Its acting president Han Duck-soo also called for an all-out response to the US tariffs.
China’s relations with the two US allies have warmed recently as the three East Asian nations pledged to deepen trade ties.


How tariffs affect China’s ties in Asia

Commerce Ministry spokesman He, when asked about recent trade talks between the EU and China, says the two sides will continue communications on their trade disputes – including on EU tariffs on Chinese electric vehicles, and the Chinese trade investigation towards EU brandy.
He says they will push for “progress” and prepare for high-level exchanges between their leaders to mark the 50th anniversary of establishment of diplomatic ties between China and the EU.
“China and Europe should uphold the independence and stability of bilateral relations and inject more certainty and positive energy into the world economy,” he said.



China and EU to continue talks: ministry

Asked about the US’ 25 per cent tariffs on imported cars, spokesman He Yadong says the duties run counter to the principles of the World Trade Organization.
They will hurt the industry, which relies heavily on the global supply chain, he says.
It will not serve the US’ purpose of safeguarding national security or help the US’ economy, he says.



Car tariffs

The EU Chamber of Commerce says the latest round of tariffs will likely affect certain elements in some of its members’ supply chains and raise “a great deal of uncertainty” for many others.
“For many companies, supply chain adjustments have been made specifically to address potential challenges regarding the movement of goods or components between the US and China, with both previous tariffs and some consumer demands compelling companies to find alternative sources,” the chamber says.
“Any subsequent restructuring of supply chains will not be possible overnight so it will take some time to understand the full impact that these tariffs will have.”


Supply chain fallout

Chinese foreign ministry spokesman Guo Jiakun tells a regular ministry press briefing that trade and tariff wars have no winners and protectionism leads nowhere.
“What the US needs to do is to correct its wrongdoing and have consultations with countries including China in an equal way that features mutual respect and reciprocity and to resolve their differences.
“It’s very clear that more countries have expressed their opposition to the unilateral bullying practices of the US, including its additional tariff hikes.”


‘Tariff wars have no winners’

The last question at the Commerce Ministry press conference is on whether the US and China have talked about trade tariffs and on the prospects for a future meeting.
He Yadong says Chinese Vice-Premier He Lifeng and US Trade Representative Jamieson Greer spoke via video call on March 26. Both countries’ economic and trade departments have maintained communication, He says.
China is willing to address mutual concerns through equal dialogue and consultations, He says.


US-China talks

According to a study by China International Capital Corporation released on Thursday, the effects of Trump’s reciprocal tariffs could be “worse than expected” and trigger greater market uncertainties and anxiety.
The Chinese investment bank predicts the new tariffs may push up the US Personal Consumption Expenditures Price Index (PCE) – which captures inflation across consumer expenses – by 1.9 percentage points and reduce real GDP growth by 1.3 percentage points. It said it could also bring in more than US$700 billion in fiscal revenue.
Faced with the risk of stagflation, it predicts the US Federal Reserve will choose to “wait and see” and may not cut interest rates in the short term.


Predicted effect on US economy

Many analysts see the intensifying US-China trade war as an opportunity for China to improve relations with the European Union, which was hit by20 per cent tariffs on Wednesday.
EU leaders are slamming Trump’s tariffs as “wrong” and “illegal” and promising a unified response. EU Commission chief Ursula von der Leyen says the bloc is finalising the first package of countermeasures in response to earlier US tariffs on steel.
Bernd Lange, who chairs the European Parliament’s International Trade Committee, says the tariffs are “unjustified, illegal and disproportionate” while Italian Prime Minister Giorgia Meloni, who is close to Trump, has described the tariffs on the EU as “wrong”. She says she will work towards a trade deal between the US and EU to prevent “a trade war that would inevitably weaken the West in favour of other global players”.
The EU has softened its stance on its trade disputes with China, with the bloc’s trade chief Maros Sefcovic visiting Beijing last week to speak to Chinese economic tsar He Lifeng.
In the meeting with Sefcovic, He said China was willing to work with the EU to “jointly oppose unilateralism and protectionism”, in an apparent reference to US tariff measures.



EU reaction and impact on China-EU ties

The Trump administration has another ambition loud and clear: to reassert the US as the dominant maritime power.
The Office of the US Trade Representative has proposed steep port fees for China-related vessels entering the country, with plans to levy up to US$1.5 million per port call.
It has caused unanimous opposition and scepticism about the possibility of the US creating a competitive shipbuilding industry from scratch.


On the waterfront

Last week, Chinese Vice-Premier He Lifeng and US trade representative Jamieson Greer held their first talks since Trump took office, agreeing to maintain communications on trade disputes and prompting speculation over whether they could pave the way for trade negotiations in the near term.
Immediately afterwards, Trump suggested he would consider cutting tariffs if Beijing backed the sale of TikTok, owned by Chinese tech company ByteDance, to a US firm. Trump is expected to announce a deal for a non-Chinese buyer to acquire a stake in TikTok’s US operations by the deadline on April 5. It is not clear Beijing will approve the deal.
Daniel Kritenbrink, former US assistant secretary of state for East Asian and Pacific Affairs, told the Post in an exclusive interview last week that the US and China were both using tit-for-tat measures to generate leverage for future trade negotiations, which could be harder to launch if those measures became harsher.


What next for trade talks?

China reported a 4 per cent growth in consumption in the first two months of 2025, a modest increase that keeps the pressure on policymakers as China strives to stimulate domestic consumption.
About 300 billion yuan of a planned issuance of 1.3 trillion yuan (US$182 billion) in ultra-long special treasury bonds this year will be used to support a consumer goods trade-in programme and widen subsidies for home appliances and other devices, the central government has announced.



On consumption

The new tariffs are likely to put downward pressure on China’s exports and growth, according to a research note published by economists at financial services firm UBS.
They expect China to roll out additional policy stimulus later this year to achieve its “ambitious” annual GDP growth target of “around 5 per cent”.
Analysts with ING also forecast Trump’s “reciprocal tariff” surprise will prompt a stronger response from China. While China has been measured in its reaction to the first two rounds of tariffs, the escalation risks a stronger response both in terms of domestic stimulus and potential retaliation, they say.
China’s central bank is likely to cut interest rates, as deflationary pressure builds and overcapacity concerns worsen.
Long-term trends of tech self-sufficiency are likely to remain in place due to tariffs, sanctions and other international barriers – but also because of China’s long-term strategic transition to a more innovation-driven economy, the report says.



Impact on Chinese economy

The Commerce Ministry’s press conference lasted around 16 minutes, with the spokesman taking six questions.
The ministry’s focus was on Beijing’s encouragement of foreign investment and on the importance its attaches to its ties with South Korea, Japan and the European Union.
The conference touched only briefly on the US tariffs.


6 quick questions

The Ministry of Commerce has ended its regular press briefing without further overt reference to Donald Trump’s tariff announcement overnight.
During the 16-minute press conference, the ministry’s spokesman did not comment on the new reciprocal tariffs during the press conference despite the ministry issuing an earlier statement saying it will retaliate to the US’ “bullying” actions.
It slammed US “unilateralism and protectionism” throughout the press conference, while pledging to deepen trade talks with the EU, Japan and South Korea.
On the prospect of future trade talks with the US following the US tariff measures, the ministry said China and the US had been “in communications” on their trade concerns, and would resolve their concerns through “equal dialogues”.
Meanwhile, in response to the reciprocal tariffs, the Chinese foreign ministry said in its daily press conference that trade and tariff wars have “no winners” and “protectionism leads nowhere”.


China slams US ‘protectionism’ but stops short of attack on Trump’s tariffs – as it happened

China says trade and tariff wars have no winners, and trade concerns will be resolved through ‘equal dialogue’

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