China Warns of Tougher Measures Following Trump’s Tariff Threat

Summary – China warns of escalated trade retaliation after Trump’s 100% tariff threat, impacting US and Europe trade relations.,

Article –

In May 2025, escalating trade tensions between the United States and China have intensified after former US President Donald Trump threatened to impose 100% tariffs on Chinese goods. This aggressive stance has led to strong warnings from Chinese President Xi Jinping and the Chinese government, suggesting tougher retaliatory measures not only against the US but also Europe, thereby expanding the trade conflict.

Timeline and Sequence of Events

The conflict escalated when Donald Trump publicly announced his plan to implement a 100% tariff on Chinese imports into the United States, citing concerns about trade imbalances and the need to protect American industries. China quickly condemned this proposal, with President Xi Jinping’s administration warning that such protectionist actions would destabilize the global economy. Following this, China threatened to escalate its retaliatory measures, indicating the possibility of impacting both the US and European countries.

Key Players

• United States government: Led by Donald Trump, who proposed the high tariffs.
• Chinese government: Under President Xi Jinping, firmly opposing the tariffs and preparing retaliatory actions.
• European Union (EU): Member states and institutions involved due to potential collateral impacts.
• World Trade Organization (WTO): Monitoring the situation closely as trade tensions escalate.

Official Statements and Reactions

The White House stated that the tariffs are meant to protect US economic interests and counteract unfair trade practices by China. Gao Feng, a spokesperson for China’s Ministry of Commerce, warned, “If the United States proceeds with unilateral tariffs at 100%, China will respond firmly in defense of its legitimate rights and interests. We also warn related parties in Europe to remain cautious against actions that could disrupt trade relations.”

European Commission President Ursula von der Leyen expressed concerns about the potential ripple effects on the EU economy, urging for de-escalation and strict adherence to WTO regulations.

Immediate Consequences

• Market volatility: Increased uncertainty affecting global markets.
• Supply chain disruptions: Possible delays and cost increases for industries reliant on Chinese imports.
• Political tensions: Heightened diplomatic efforts to manage and contain the conflict.

European Reactions

EU member states have called for unity and diplomatic engagement to prevent wider disputes. Germany’s Chancellor Olaf Scholz stated, “Europe stands ready to protect its interests while seeking peaceful resolutions through dialogue.” Similarly, France’s President Emmanuel Macron highlighted the importance of a multilateral approach to resolve trade issues.

The European Commission is preparing contingency plans to address potential disruptions and may pursue legal actions at the WTO against any unilateral retaliations.

What Lies Ahead?

• Diplomatic talks among the US, China, and Europe are expected to intensify.
• The WTO might receive formal complaints and launch investigations.
• Efforts towards negotiation and reduction of trade barriers will proceed, though significant challenges remain.
• An official schedule for follow-up discussions has not yet been announced.

Monitoring of market and governmental responses will be critical as the situation develops. Stay tuned to Questiqa Europe for continuous updates on this evolving trade conflict.

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