China 'Resolutely Opposes' Trump's 50% Tariff Threat, Vows Countermeasures As Trade Tensions Jolt Markets: 'Will Fight To The End'

China’s Commerce Ministry “resolutely opposes” U.S. President Donald Trump‘s threat to impose additional 50% duties on Chinese imports and vowed to take countermeasures to protect its interests, intensifying trade tensions that have already triggered market turmoil.

What happened: The strong response came after Trump announced he would implement higher tariffs if Beijing doesn’t withdraw the 34% duty it placed on American products last week. Trump set an Apr. 8 deadline for China to reverse its position.

“The U.S. threat to escalate tariffs on China is a mistake on top of a mistake,” the Commerce Ministry said in a statement translated by CNBC. “China will never accept it. If the U.S. insists on its own way, China will fight to the end.”

The trade dispute has sparked volatility across global markets, with the S&P 500 tracked by SPDR S&P 500 SPY falling 0.23% and the Dow Jones Industrial Average tracked by SPDR Dow Jones Industrial Average ETF DIA dropping 0.91% in Monday trading.

See Also: Elon Musk’s Brother Kimbal Musk Calls Trump ‘Most High Tax American President In Generations,’ Warns Tariffs Are A ‘Permanent Tax’ On US Consumers

Why It Matters: BlackRock Inc. CEO Larry Fink rejected suggestions that tariffs only impact Wall Street, telling the Economic Club of New York that “62% of Americans now invest in equities — the market impact is impacting Main Street.” He warned the tariffs would “freeze more and more consumption” in the broader economy.

The dispute has particularly threatened technology sectors. Wedbush Securities analyst Dan Ives predicted U.S. tech company earnings could decline by 15% if the tariffs proceed as planned, with consumer electronics prices potentially rising 40-50%. “We assume tariff negotiations start now otherwise dark days are ahead for tech…and US consumers pay the price,” Ives wrote.

Federal Reserve Chair Jerome Powell has expressed concern over the “unexpected size” of Trump’s tariffs, warning they would likely drive higher inflation while slowing economic growth. JPMorgan has increased its recession forecast to a 60% probability by year-end.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.