China urges U.S. to 'immediately' cancel reciprocal tariffs, vows counter-measures

China Urges U.S. to 'Immediately' Cancel Reciprocal Tariffs, Vows Counter-Measures

In the latest escalation of trade tensions between the world's two largest economies, China has called on the United States to "immediately" cancel reciprocal tariffs imposed on its goods, warning that failure to do so will prompt retaliatory measures. The Chinese Ministry of Commerce issued a strong statement condemning what it described as "unjustified trade barriers" and signaled its readiness to take counteractions to protect its economic interests.

Background of the Tariff Dispute

The U.S.-China trade dispute, which has been ongoing for several years, saw a resurgence in 2025 as both nations revisited the tariffs imposed under the previous administrations. Despite a brief period of easing tensions following the Phase One trade agreement, recent policy shifts in Washington have reignited economic frictions. The U.S. government has maintained that tariffs are necessary to address unfair trade practices, intellectual property theft, and market imbalances.

In response, Beijing has consistently denounced these tariffs, arguing that they disrupt global supply chains and hurt both economies. The latest demand from China follows the Biden administration’s decision to maintain or even increase tariffs on select Chinese imports, citing national security and economic competitiveness concerns.

China’s Response and Potential Counter-Measures

China’s Ministry of Commerce spokesperson stated, "The U.S. must immediately cancel these unilateral and protectionist tariffs, which harm both Chinese and American businesses. If the U.S. continues its unfair trade practices, China will not hesitate to take all necessary counter-measures to safeguard its legitimate interests."

While the specifics of China's retaliatory actions were not disclosed, past responses have included imposing tariffs on U.S. agricultural and industrial products, restricting American firms' access to Chinese markets, and leveraging its dominance in critical industries, such as rare earth minerals, to exert pressure.

Impact on Global Markets

The renewed trade tensions have already begun affecting global financial markets, with investors fearing another trade war that could destabilize international commerce. Stocks of major multinational corporations with exposure to both the U.S. and China have shown increased volatility amid uncertainty over potential supply chain disruptions and higher costs.

Analysts warn that a prolonged tariff battle could negatively impact economic growth in both countries, slowing down investment and consumer spending. "If these trade restrictions persist, both economies could face significant setbacks, with ripple effects on global markets," said Dr. Andrew Sullivan, an economist specializing in international trade.

Path Forward

Despite the tensions, diplomatic efforts to resolve the dispute continue. Trade representatives from both nations are expected to meet in the coming weeks to discuss potential resolutions. The international community has urged both countries to engage in constructive dialogue to avoid further economic disruptions.

For now, businesses and consumers in both the U.S. and China remain caught in the crossfire, awaiting the next move in this high-stakes trade standoff. Whether the U.S. will heed China’s demand and reverse course or whether the situation will escalate further remains to be seen.