China and EU Hit Back at Trump’s Tariff Bombshell, Threaten Retaliation

Beijing has demanded an end to Trump’s sweeping new tariffs and vowed a strong response, while the European Union is preparing a counterstrike worth $32 billion against American products. The latest escalation has set the stage for a full-blown trade war, rattling global markets.

A Geopolitical Firestorm

Former President Donald Trump’s decision to impose large-scale tariffs on nearly all U.S. trade partners has ignited a geopolitical crisis. Within hours of the announcement—set to take effect at midnight on Thursday (3)—China and the European Union condemned the move, calling it “unilateral,” “self-destructive,” and a direct threat to global economic stability. Both powers have promised strong countermeasures, fueling fears of a new phase in the ongoing trade war.

China Warns of Severe Retaliation

Beijing has pledged to strike back against the new tariffs, which now push duties on Chinese products to 54%, adding to the 20% imposed earlier this year. “This measure disregards the balanced interests achieved through years of multilateral negotiations,” stated China’s Ministry of Commerce. “China firmly opposes this and will take countermeasures to safeguard its rights and interests.”

Chinese officials warned that the decision could derail any prospects for renewed U.S.-China trade talks. Trump had sought a meeting with President Xi Jinping, but that possibility is now in jeopardy. “If the U.S. continues to exert pressure and even resorts to blackmail, China will resolutely respond,” said Wang Yi, China’s top diplomat, in an interview with Russian state media.

Beyond tariffs on American agricultural products, China is considering restrictions on U.S. investments and export controls on rare earth minerals, which are critical to high-tech industries.

EU Prepares Multi-Billion Dollar Counterstrike

In Brussels, European Commission President Ursula von der Leyen confirmed that the bloc would respond in full force. “If you hit one of us, you hit all of us,” she declared at a press conference on Thursday. Labeling Trump’s tariffs a “severe blow to the global economy,” von der Leyen announced that the EU is finalizing a retaliation package worth up to €26 billion ($32 billion) in tariffs on U.S. goods, expected to be implemented by mid-April.

European officials are also weighing the use of new anti-coercion legislation to expand their response options, while the European Central Bank has warned that the tariffs could shave between 0.3 and 0.5 percentage points off eurozone economic growth.

Markets in Turmoil

Financial markets reacted swiftly to the escalation. S&P 500 futures plunged more than 3%, while Asian stock markets tumbled—Japan’s Nikkei fell over 3%, and Hong Kong and South Korea saw nearly 2% declines.

As tensions mount, the world is bracing for further economic disruption, with investors fearing that the global trade landscape may be heading toward a new era of prolonged uncertainty.