In a powerful diplomatic response to US President Donald Trump's recent imposition of 104% tariffs on all Chinese imports, Chinese Premier Li Qiang made it clear that China is fully equipped to counter any external economic shocks. The latest trade development represents a sharp escalation in the ongoing China-US trade war, but Beijing is confident in its economic resilience and long-term strategy for sustained and healthy growth in 2025.

The announcement came just ahead of the tariff rollout, during a phone call between Premier Li Qiang and European Commission President Ursula von der Leyen. Li assured the European Union that China has laid down macroeconomic policies in 2025 that factor in global uncertainties, especially unpredictable foreign trade measures like the ones imposed by Trump.

Premier Li Qiang categorically stated that China can "fully offset" the negative effects of the tariffs. This assurance comes amid widespread concern in the global economic community, as the 104% surcharge on Chinese goods threatens to disrupt global supply chains, provoke retaliatory measures, and potentially lead to inflationary spikes across international markets.

During the call, Li Qiang slammed the move by the Trump administration as “unilateralism, protectionism, and economic coercion.” He emphasised that China’s response will not only be about protecting its domestic interests but also about upholding fair international trade rules. This is a critical message from China, especially as Europe is also facing a 20% tariff on its goods from the United States under Trump’s expanded tariff plan.

Li’s comments resonated across global headlines as he said, “Protectionism leads nowhere – openness and cooperation are the right path for all.” The Chinese Premier's message reflects Beijing’s broader stance: despite provocations, China will remain committed to multilateralism, cooperative global trade, and domestic stability.

The new US tariffs came into effect at 12:01 AM on 9 April 2025, sending shockwaves across international markets. The Trump administration, doubling down on its "America First" agenda, argues that these aggressive tariffs are necessary to revive the US manufacturing sector. The idea is to force companies to shift their production bases back to the US, creating jobs and reducing reliance on Chinese manufacturing.

However, economists and global business leaders have questioned the viability of such a policy. Critics argue that these tariffs are more likely to raise consumer prices in the US, aggravate inflation, and hurt small businesses dependent on affordable imports. The financial markets have responded accordingly, with major US stock indices dropping sharply just ahead of the official tariff rollout.

The implications of this move go beyond just economic metrics. The 104% tariff on Chinese imports and 20% levy on European goods indicate a broader shift in US foreign economic policy — one that’s increasingly confrontational. In this climate, China’s commitment to economic diplomacy and internal economic strengthening becomes even more crucial.

In his remarks, Li Qiang outlined that China’s 2025 strategy is built around macroeconomic policies tailored to navigate global volatility. These include infrastructure investments, technological innovation, domestic consumption promotion, and stronger bilateral ties with trading partners beyond the United States, such as the European Union, BRICS nations, and countries participating in the Belt and Road Initiative.

Importantly, China's response to the tariffs will not be purely defensive. Sources suggest that countermeasures could include reciprocal tariffs on US exports, diversifying import sources, and stepping up currency management and capital inflow controls to cushion any financial impacts. There's also speculation that China may accelerate trade talks and agreements with other economies, potentially isolating the US further on the global trade stage.

Beyond the direct US-China friction, European stakeholders are increasingly concerned about becoming collateral damage in the Trump trade strategy. The 20% tariff on European imports has not only sparked frustration in Brussels but has also added urgency to efforts to strengthen EU-China trade ties, with both sides recognising their mutual interest in upholding a rules-based international trade order.

Li Qiang’s statement during the call—“China will stand firm in protecting its development interests and the global trading system”—reflects the country’s readiness for long-term resilience rather than short-term confrontation. This suggests Beijing is not simply reacting to Washington’s moves, but is strategically positioning itself as a stable pillar in an increasingly fragmented global economy.

As the global trade landscape continues to shift dramatically under the influence of protectionist policies and geopolitical frictions, China is asserting itself as a counterweight. With a clear roadmap for economic stability, international cooperation, and measured retaliation, the country appears focused on navigating 2025 with firm determination and strategic clarity.

The Trump 104% tariffs may have ignited yet another phase of economic tension, but China’s leadership has shown it is neither panicked nor unprepared. The world will be watching closely how this new chapter in the US-China trade war unfolds — and how China, with support from allies like the EU, charts a path of resilience and long-term growth.

In conclusion, as China slams Trump’s tariff blitz, it projects a confident and calculated response. The focus on economic resilience, multilateral engagement, and trade fairness underscores Beijing’s intent to weather the storm while reaffirming its position in the global economic order.

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