China Warns of Stronger Measures Following Trump’s Tariff Threat

Summary – China has announced plans for harsher responses after the US announced potential 100% tariffs, raising prospects of intensified trade tensions affecting Europe.,

Article –

On May 20, 2025, escalating trade tensions emerged as former US President Donald Trump announced a potential imposition of 100% tariffs on Chinese goods. This announcement has led to a strong reaction from China’s leadership under President Xi Jinping, who has vowed to take harsher retaliatory actions not only against the US but also against European countries involved in trade partnerships. This situation represents a critical point in the global trade landscape, with significant implications for European markets and international economic relations.

What Happened?

Donald Trump’s announcement indicated plans to levy tariffs of up to 100% on a broad range of imports from China. The intention behind this threat is to address concerns regarding trade imbalances and intellectual property policies. However, it has also heightened geopolitical tensions and risks disrupting global supply chains. In response, China’s government has declared imminent implementation of more severe countermeasures targeting both US and European economic interests. These measures could include:

• Tariffs
• Regulatory barriers
• Other trade restrictions

Who Is Involved?

The primary actors are:

1. The United States, influenced by Donald Trump’s policy proposals.
2. The People’s Republic of China, governed by President Xi Jinping.
3. European Union member states, as indirect stakeholders impacted by China’s announced measures targeting Europe as well.

EU trade officials and policymakers have expressed concern about the potential ramifications on European exports and supply chains, which are tightly linked with both US and Chinese markets.

European Reactions

The European Commission, responsible for managing EU trade policy, has called for calm and emphasized the importance of dialogue to resolve the trade disputes. European Commissioner for Trade, Valdis Dombrovskis, stated:

“Escalating tariff actions would disrupt the global economy and complicate our supply chains. The EU stands ready to engage with both the US and China to ensure trade remains fair and rules-based.”

Several EU member states including Germany, France, and the Netherlands have highlighted the risks of retaliatory tariffs impacting their export-driven economies and urged all parties to return to negotiation tables promptly.

Immediate Consequences

Economic analysts predict that the proposed US tariffs and Chinese countermeasures could cause significant disruptions to global trade flows. Expected consequences include:

• Increased manufacturing costs
• Inflationary pressures within the EU
• Significant impacts on industries such as electronics, automotive, and machinery
• Uncertainty for businesses dependent on transatlantic and Sino-European supply chains
• Potential delays in investments and contractual commitments

What Comes Next?

EU trade officials plan to monitor the situation closely and seek consultations under the World Trade Organization (WTO) frameworks to mitigate adverse effects. Important upcoming events include:

• The EU-US Trade and Technology Council meeting
• The EU-China Summit scheduled for July 2025

These will serve as formal platforms to address escalating tensions. The European Commission is also preparing contingency plans to protect key industries from potential tariff spillovers and to support affected companies during this period of uncertainty.

Worldwide stakeholders continue to closely observe the situation given its potential to reshape trade relations among major global economies and impact international markets.

Stay tuned to Questiqa Europe for more regional updates and reports.

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