China declared it would "fight to the end" after US President Donald Trump threatened to impose an additional 50% in tariffs on all Chinese imports. The trade war between the world's two largest economies intensified, with both sides showing little inclination to negotiate. Trump had already announced new tariffs last Wednesday, including 34% import levies on Chinese goods. In response, China imposed 34% tariffs on US goods two days later. On Monday, Trump warned of more tariffs if China does not withdraw its retaliatory tariffs. "If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," he posted on social media. If enacted, China would be facing cumulative tariffs of 124%, comprising the existing 20% US tariffs, the recently announced 34%, and the additional 50%. In response, China's Ministry of Commerce said: "The US threat to escalate tariffs on China is a mistake on top of a mistake," adding, "If the US insists on its own way, China will fight to the end." The ministry urged the US to resolve differences through equal dialogue based on mutual respect. Earlier, Trump told Israeli Prime Minister Benjamin Netanyahu that he was not considering a pause on planned tariffs while open to negotiations. However, he reiterated the threat to impose additional 50% tariffs on China. Trump also indicated at a press conference that he would not accept the EU's offer for zero tariffs on cars and industrial goods. "The European Union's been very bad to us. They're going to have to buy their energy from us, because they need it and they're going to have to buy it from us. They can buy it, we can knock off $350bn in one week." The EU has dropped a plan to impose 50% retaliatory tariffs on American whiskey, instead proposing 25% tariffs on some US goods, which is a countermeasure to Trump's 25% import levies on steel and aluminum. Asian markets rebound on dip-buying Asian stock markets rebounded from the recent market turmoil, likely due to dip-buys after the intense selloffs in the past week. Hopes for tariff talks between the US and its trading partners also fuelled the rally. Japan's benchmark Nikkei 225 jumped over 6% at the open after falling to an 18-month low on Monday. Japan is set to meet the US Trade Representative Jamieson Greer on Wednesday after a phone call between Japanese Prime Minister Shigeru Ishiba and President Trump on Monday. China's Hang Seng Index rose as much as 3.7% before paring gains as state funds intervened to support Chinese equities. Investors also increased their bets on more stimulus measures to be imposed by Beijing. China's five-year interest rate swaps fell to the lowest since 2020, signaling further easing monetary policy ahead. The People's Bank of China set the Chinese Yuan fixing against the US dollar to the weakest level since September 2023, aiming to support its exports. Additionally, Australia's ASX 200 rebounded 1.9%, driven by mining stocks, while South Korea's Kospi index climbed slightly. The US stock futures also climbed, with three benchmarks, including the S&P 500, the Dow Jones Industrial average, and the Nasdaq composite, all up more than 1%. The broad rebound in global stock markets prompted similar movements in European equities. However, analysts suspect the sustainability of the rebound. "I wouldn't exactly be betting the house on a durable bounce, unless and until we get a decisive policy pivot," Michael Brown, a senior research strategist at Pepperstone, wrote in a note. — Euronews
