China says ‘market has spoken’ after Trump tariffs spark global stocks rout

China Says ‘Market Has Spoken’ After Trump Tariffs Spark Global Stocks Rout

By Steven Orlowski, CFP, CNPR

Beijing, April 5, 2025 – China issued a sharp response Friday to a fresh round of tariffs announced by former U.S. President Donald Trump, saying the resulting plunge in global stock markets reflected the world’s rejection of protectionism and economic nationalism.

Speaking at a press briefing in Beijing, Ministry of Commerce spokesperson Liang Wenbin said, “The market has spoken. Global investors have delivered a clear verdict on the consequences of reckless trade unilateralism. We urge the United States to return to rational dialogue and cooperation.”

The remarks come hours after Trump unveiled a sweeping new tariff package targeting over $300 billion in Chinese goods, should he return to office. The proposal, made during a campaign rally, includes new duties on electronics, machinery, and consumer goods, aimed at what he described as “leveling the playing field.”

Markets reacted swiftly. The Dow Jones Industrial Average dropped 2.4%, while the S&P 500 lost 2.1%. The tech-heavy Nasdaq tumbled 3.0%, reflecting investor fears of a renewed trade war between the world’s two largest economies. Asian and European markets also slid, with Hong Kong’s Hang Seng Index down 3.8% and Germany’s DAX shedding 2.5%.

Analysts said the proposed tariffs stirred memories of the 2018–2019 U.S.–China trade conflict, which disrupted global supply chains and caused extended market volatility.

“Markets are pricing in a potential return to the Trump-era economic playbook, which includes aggressive tariffs and a more isolationist stance,” said Julia Kwan, a senior economist at HSBC. “That uncertainty is toxic for investors who have been banking on global stability and normalized trade flows.”

In its official response, China hinted at possible countermeasures but stopped short of detailing specific retaliatory tariffs. “We do not seek escalation,” said Liang. “But we will take all necessary actions to defend our legitimate interests and safeguard global economic stability.”

U.S. officials and business leaders appeared divided. Some industrial and manufacturing groups welcomed the proposed tariffs, saying they would protect American jobs from unfair competition. Others, including technology and retail firms, warned that new duties would raise costs for consumers and further complicate supply chains already strained by geopolitical tensions and raw material shortages.

The Biden administration has yet to comment on Trump’s proposals but has previously advocated a “strategic competition” approach to China, combining targeted trade enforcement with engagement on global issues like climate change and public health.

As the 2024 presidential campaign intensifies, economic nationalism and the U.S.–China relationship are likely to remain hot-button issues, with markets watching closely for policy signals.

In the meantime, Beijing appears to be framing the market reaction as proof of global disapproval. “Let the numbers speak,” said Liang. “The world understands that open cooperation, not tariffs and confrontation, is the path to prosperity.”