China has fired back at President Donald Trump's latest tariff measures with a stark warning, declaring that Beijing is prepared for a full-scale trade war—or any other type of conflict.

Trump, 78, announced an expansion of tariffs following the implementation of a 25% tax on imports from Mexico and Canada on Tuesday. Additional duties on Chinese goods also took effect, with the president vowing further tariff hikes starting April 2.

During his Tuesday night address to Congress, Trump revealed that upcoming measures would include "reciprocal tariffs" and non-tariff actions aimed at addressing what he called "decades of unfair trade imbalances."

China’s foreign affairs ministry swiftly responded, issuing a defiant statement: "If war is what the U.S. wants—be it a tariff war, a trade war, or any other type of war—we’re ready to fight till the end." The Chinese Ambassador to the U.S. reinforced this stance by sharing the same warning.

Tensions escalate as trade war looms

The tariffs could disrupt nearly $2.2 trillion in annual trade, a move Trump justified by accusing China, Mexico, and Canada of failing to curb the flow of fentanyl and its precursor chemicals into the U.S.

Beijing dismissed these claims, calling the fentanyl crisis a "flimsy excuse" for escalating trade restrictions. The foreign affairs ministry condemned the U.S. administration, stating:

"Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion, or threats are not the right way to deal with China."

Fears of an all-out trade war have rattled financial markets, with economists warning of potential economic slowdowns and rising costs for American consumers already grappling with inflation.

China denounces tariffs, rejects blame for fentanyl crisis

Trump justified his tariff push by arguing that other nations have long imposed high duties on American products. "Other countries have used tariffs against us for decades, and now it’s our turn," he told Congress, citing trade policies from India, South Korea, the EU, and China.

However, Beijing fiercely opposed the move. In a statement posted on social media, China’s foreign affairs ministry stated:

"Anyone using maximum pressure on China is picking the wrong opponent and miscalculating."

China also rejected responsibility for America’s fentanyl epidemic, saying:

"The U.S.—not anyone else—is responsible for the fentanyl crisis within its borders. We have taken strong steps to assist the U.S. in tackling the issue, but instead of recognizing our efforts, Washington is choosing to smear and shift blame."

The ministry accused Trump’s administration of "blackmail" and "punishing" China despite its efforts to help. Chinese Ambassador Xie Feng echoed these remarks, urging the U.S. to engage in dialogue "as equals" instead of resorting to "coercion and threats."

Trade war triggers global retaliation

Trump’s aggressive tariff strategy is already drawing pushback from major U.S. trade partners, including Canada and Mexico.

Canadian Prime Minister Justin Trudeau slammed the move as "a very dumb thing to do," announcing retaliatory tariffs of 25% on $20.7 billion worth of U.S. imports—including orange juice, peanut butter, beer, coffee, and motorcycles. He warned that Canada would impose additional tariffs on $125 billion in U.S. goods if Trump’s tariffs remain in place for more than 21 days.

Mexico’s President Claudia Sheinbaum has also vowed retaliation, though details of Mexico’s response will be announced on Sunday.

Meanwhile, China has already retaliated, imposing 10-15% additional tariffs on certain U.S. imports starting March 10. Beijing also introduced new export restrictions targeting specific U.S. entities and filed a formal complaint with the World Trade Organization (WTO).

Economic fallout and rising prices in the U.S.

Trump’s tariff hikes are already leading to price increases for American consumers.

Retail giant Target confirmed it would raise prices on some grocery items, including Mexican avocados, within days. Electronics retailer Best Buy also warned of price hikes, with CEO Corie Barry noting that China remains the company’s top supplier of goods, followed by Mexico.

The new 20% tariff on Chinese imports will target previously untouched product categories, including smartphones, laptops, video game consoles, smartwatches, Bluetooth devices, and speakers.

Economists warn that these tariffs could lead to an additional $1,000 per year in extra costs for the average American household.

"The strengthening U.S. dollar may help offset some of the inflationary impact, but prices will still rise," said Kathy Bostjancic, chief economist at Nationwide Mutual.

U.S.-China relations continue to strain

Despite the escalating tensions, Trump has previously praised his relationship with Chinese President Xi Jinping.

Ahead of Trump’s inauguration, the two leaders discussed trade, fentanyl, and the future of the TikTok ban in a phone call. Xi reportedly expressed optimism about strengthening U.S.-China relations, telling Trump:

"We both attach great importance to interaction. We hope for a positive start to U.S.-China relations under your new presidency and are willing to make progress from a new starting point."

Trump later posted on Truth Social that "the call was a very good one for both China and the USA" and expressed hope for global peace and stability.

However, tensions have only escalated since then, with China viewing Trump’s latest tariffs as an act of economic aggression.

As the trade dispute deepens, the world watches to see if the standoff will remain economic—or if it could spiral into something even more serious. Photo by Krokodyl, Wikimedia commons.