China Threatens Major Retaliation Against US and Europe After 100% Tariff Threat

Rising tensions between the United States and China have put both the US and Europe on high alert following the announcement of planned tariffs. On May 15, 2025, US President Donald Trump declared intentions to impose a 100% tariff on Chinese imports. This decision aims to pressure China regarding trade imbalances and intellectual property issues.

In response, Chinese President Xi Jinping warned of severe retaliatory measures targeting not only the United States but also Europe. The Chinese government has announced it will halt exports of critical materials and components used across various industries. Such actions threaten global supply chains and could significantly impact businesses in the US and Europe.

Key Export Restrictions by China

• Rare earth elements essential for high-tech manufacturing
• Materials crucial for electronics production
• Components used in automotive industries
• Resources for green energy sectors

Chinese officials emphasize that these measures are intended to protect their economic interests. They accuse the US of destabilizing global trade through unilateral tariff threats. Meanwhile, European officials have expressed concern over potential spillover effects, as many European companies rely heavily on Chinese imports within an interconnected global market.

Potential Economic Impact

Analysts caution that this escalating trade dispute could:

1. Harm global economic growth
2. Trigger a trade war increasing consumer prices
3. Lead to market volatility

Both the US and China have called for negotiations but have yet to reach a mutual agreement. Trade experts advocate for cooperation and dialogue to avoid a prolonged conflict that could threaten millions of jobs worldwide.

For now, businesses in the US, Europe, and China are bracing for economic uncertainty. Governments are urged to collaborate in finding peaceful solutions that promote fair trade while preventing damaging retaliation. The situation remains dynamic, and the international community continues to closely monitor developments.

Stay tuned to Questiqa Europe News for the latest updates.

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