China slams latest US threat, rushes to stabilise markets as trade war escalates

Ministry of Commerce vows to ‘resolutely’ strike back against any US moves to impose further tariffs

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The headquarters of the People’s Bank of China (PBOC) in Beijing. Photo: Getty Images

Alice Liin Hong Kong,Ji Siqiin BeijingandSylvia Main Hong Kong

Published: 9:01am, 8 Apr 2025Updated: 6:00pm, 8 Apr 2025

China has vowed to take “countermeasures” against any move by the United States to further raise tariffs and pledged to take firm action to stabilise the markets, after US President Donald Trump threatened to slap another 50 per cent duty on Chinese imports.

China’s Ministry of Commerce said on Tuesday that China “firmly opposes” any moves to increase tariffs by the US and vowed to “resolutely respond” if it does so.

“The US threat to escalate tariffs is doubling down on its mistakes, once again exposing its nature of coercion. China firmly rejects this. If the US persists in its course, China will resolutely respond with countermeasures to the end,” the ministry said, according to the state-run Xinhua News Agency.

Meanwhile, the People’s Bank of China said it would “provide relending support if necessary to resolutely defend the stability of the capital market”, as officials rushed to contain the fallout from an escalating trade war between the world’s two largest economies.

After plunging on Monday, Chinese markets picked up on Tuesday, with the CSI 300 index rising by 1.71 per cent and the benchmark Shanghai composite index climbing 1.58 per cent. Hong Kong’s Hang Seng Index recorded an increase of 1.51 per cent.

Elsewhere in Asia, Japan’s Nikkei 225 Index rose by 6.03 per cent. Indices also rose in Seoul and Kuala Lumpur, while the benchmark index in Singapore dropped.