China Warns U.S. of Retaliation as Trade War Heats Up

Beijing has issued a stark warning to Washington, declaring it is “ready for a fight” in response to President Donald Trump’s escalating tariffs on Chinese goods. The strong rhetoric marks a significant escalation in the ongoing trade tensions between the two economic giants.

Trump initially announced the tariffs last month, targeting China, Canada, and Mexico as part of his administration’s efforts to curb illegal drug flows and undocumented migration into the United States. Under the new measures, a 25% tariff will be applied to all imports from Mexico and most goods from Canada, while Chinese imports will face a 10% tariff—later doubled to 20%.

As some of the U.S.’s biggest trading partners, the affected countries have been quick to respond. Canada and Mexico managed to negotiate a temporary one-month reprieve, but the pause expired on Monday after Trump declared that tariffs would resume the following day.

China has taken its grievances to the World Trade Organization (WTO), which has warned that a full-scale trade war could have devastating economic consequences. In retaliation, Beijing has imposed tariffs of 10-15% on selected U.S. imports, set to take effect on March 10. Additionally, new export restrictions have been placed on designated U.S. entities.

China’s foreign ministry slammed Washington’s justification for the tariffs, calling the U.S. crackdown on fentanyl a “flimsy” excuse for economic aggression.

“The U.S., not anyone else, is responsible for the #FentanylCrisis inside the U.S.,” the ministry stated, emphasizing that China had taken “robust steps” to assist America in addressing the crisis.

“Instead of recognizing our efforts, the U.S. has sought to smear and shift blame to China, using tariff hikes as a tool for coercion and blackmail,” the ministry continued. “Intimidation does not scare us. Bullying does not work on us.”

In an ominous closing statement, the ministry warned: “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.”

Canadian Prime Minister Justin Trudeau also pushed back against the tariffs, calling Trump’s move a “very dumb thing to do.”

In retaliation, Canada slapped a 25% tariff on $21 billion (CAD 30 billion) worth of U.S. imports, with a warning that it could escalate to $87 billion (CAD 125 billion) in additional tariffs within 21 days if necessary.

Trump, in turn, warned that any retaliatory tariffs from Canada would be met with equal force from the U.S.