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

On May 15, 2025, trade tensions between the United States and China intensified after President Donald Trump announced a potential 100% tariff on Chinese goods. In response, the Chinese government has threatened severe retaliation against both the US and European Union countries.

US Tariff Announcement and Its Purpose

The Trump administration proposed doubling existing tariffs as a measure to tackle what it describes as unfair trade practices by China. The goal is to protect American industries and manufacturing jobs. However, this strategy has triggered concerns about a potential full-scale trade war with worldwide economic consequences.

China’s Retaliatory Measures

Chinese President Xi Jinping’s government has promised immediate and decisive actions, including plans to:

• Halt exports of critical materials such as rare earth elements and high-tech components.
• Target industries that rely heavily on these materials, like electronics and automotive sectors in the US and Europe.
• Possibly extend restrictions beyond trade to affect diplomatic relations and international cooperation.

Global Economic Impacts

These developments threaten to disrupt supply chains and increase costs for consumers worldwide. Experts warn that the ongoing trade conflict could slow economic growth not only in the US, China, and Europe but globally. European Union leaders are particularly concerned about being caught in the crossfire, urging diplomatic efforts to ease tensions.

Different Perspectives on the Conflict

The US defends tariffs as necessary to address issues like intellectual property theft, technology transfer, and state subsidies by China. Conversely, China sees these measures as protectionist and harmful to global trade norms.

Calls for Dialogue and Negotiations

Industry leaders and economists emphasize the importance of dialogue to avoid a damaging trade war. Extended tariffs and export controls could cause price increases on everyday goods and raw materials, negatively impacting consumers and businesses on both sides.

As this trade dispute continues, global markets remain vigilant. The future of international trade relations and economic stability depends on the forthcoming decisions by both the US and Chinese governments.

Stay tuned for more updates from Questiqa Europe News.

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