China has made it clear that it is willing to fight back in response to the latest trade restrictions imposed by the United States. “China will fight to the bitter end of any trade war,” declared a spokesperson from the Chinese Foreign Ministry. This statement came shortly after Beijing announced retaliatory tariffs on key U.S. agricultural products. The US-China trade war is once again at the center of global economic concerns.
The new 10% levy on Chinese imports imposed by the U.S. went into effect on Tuesday. This adds to the existing tariffs implemented during Donald Trump’s first term and those introduced last month. However, China’s latest countermeasures appear to be more of an opening move rather than an outright escalation.
While the retaliatory tariffs demonstrate strength and could negatively impact the U.S., they also leave room for negotiation. “We advise the U.S. to put away its bullying face and return to the right track of dialogue and cooperation before it is too late,” said Lin Jian, a spokesperson for China’s Foreign Ministry.
China’s response reflects a broader strategy—while it is taking steps to push back against the U.S., it is not completely shutting down the possibility of future negotiations. The US-China trade war has been a point of contention for years, and Beijing is ensuring that it remains in a position to either escalate or negotiate, depending on how Washington reacts.
Why is China Targeting U.S. Farmers?
This marks the second round of tariffs exchanged between the two countries since February. This time, China has strategically targeted a sector that could politically hurt Donald Trump—American farmers. Nearly 78% of U.S. farming-dependent counties supported Trump in the 2024 elections.
China is one of the biggest buyers of American agricultural products such as chicken, beef, pork, and soybeans. With the new tariffs set to range from 10% to 15%, these products will face significant cost increases starting March 10.
Market analysts suggest this will have a bearish influence on U.S. agricultural prices. “The tariffs are broadly negative for U.S. agricultural markets. It is going to have a bearish influence on prices. There are enough corn and soybean supplies in the world for China to make a switch. It is more of an issue for the U.S. because 30% of U.S. soybeans still go to China,” said Ole Houe of Ikon Commodities.
By focusing on agricultural goods, China is directly targeting one of Trump’s key voter bases. The move is calculated—it causes economic harm to American farmers while also sending a message that Beijing is willing to retaliate when necessary.
Will China and the U.S. Negotiate?
China’s latest measures suggest it is prepared for a prolonged battle but remains open to discussions. “Pressure, coercion, and threats are not the right way to deal with the Chinese side,” Lin reiterated.
Unlike the 2018 trade war, when Beijing imposed a 25% tariff on U.S. soybeans, China appears to be adopting a more restrained approach this time. “China’s tariffs impact a limited number of U.S. products and remain below the 20% level. This is by design. China’s government is signaling that they do not want to escalate; they want to de-escalate,” said Even Pay, an analyst at Trivium China.
There were indications last month that both sides were open to dialogue, with reports suggesting a possible phone call between Chinese President Xi Jinping and Donald Trump. However, that call never materialized.
China is unlikely to initiate the conversation, as it does not want to appear submissive to Washington. Instead, Beijing is waiting for the U.S. to make the first move in this US-China trade war.
How is China Responding to U.S. Pressure on Fentanyl?
Unlike Canada and Mexico, China has not introduced new measures to control fentanyl flow into the U.S. Instead, Beijing has reiterated past statements that fentanyl is primarily a “U.S. problem” and that China has the world’s strictest drug policies.
On Tuesday, China’s State Council released a White Paper titled “Controlling Fentanyl-related Substances – China’s Contribution.” The document outlines the country’s existing efforts to crack down on fentanyl-related crimes and restrict the precursor chemicals used in drug production. It also asserts that China is “diligently fulfilling international drug control obligations.”
This move appears to be part of China’s broader message that it is already doing its part in addressing the fentanyl crisis, dismissing any pressure from Washington.
What Could a Trade War Mean for China's Economy?
While Beijing maintains a strong stance, these tariffs could have significant economic implications at home. The cumulative 20% tax on all Chinese goods follows a series of tariffs imposed by Trump during his first term, affecting billions of dollars’ worth of imports.
China’s economy is already facing challenges. House prices continue to fall, youth unemployment remains high, and concerns over a sluggish economic recovery persist. Thousands of delegates have gathered in Beijing for the annual parliamentary session, where the primary focus is the economy. The possibility of an extended US-China trade war could further strain consumer spending and business confidence.
For China, maintaining economic stability is crucial. The government has been encouraging consumer spending and investment to counter economic slowdowns. However, an extended trade war with the U.S. could lead to reduced foreign investments and hinder China’s economic recovery efforts.
How is China Trying to Gain International Support?
At the same time, China is working to portray the U.S. as the aggressor in this trade dispute. State media outlets, such as Xinhua, have released a series of parodies mocking Washington’s approach to tariffs. These skits depict the U.S. as a bully, a sentiment echoed by leaders from Canada and Mexico.
China’s Commerce Ministry has also emphasized its willingness to work with other nations against U.S. tariffs. Beijing appears to be seeking allies in the global trade community while painting Washington as an unreliable partner, even to its closest allies.
Meanwhile, Trump’s “America First” doctrine continues to raise concerns in Europe and the UK. With mounting uncertainty over U.S. foreign trade policy, some are questioning whether the U.S.-led global economic order is already at risk of collapse.
China is using this moment to strengthen economic ties with other countries, presenting itself as a stable and reliable trading partner. By doing so, it aims to counterbalance U.S. influence while gaining diplomatic leverage.
What Happens Next?
The prospect of an all-out US-China trade war between the world’s two largest economies looms larger than ever. However, China’s carefully calibrated response suggests that while it is ready to push back, it is also leaving the door open for negotiation.
With both sides maintaining a firm stance, the world is watching closely. If neither country backs down, businesses and consumers on both sides will feel the economic impact. The key question remains—who will make the first move?
