China issued a pointed response to sweeping new U.S. tariffs on Saturday, condemning the measures as economically reckless and politically damaging, while pointing to the global market selloff as proof of their destabilizing impact.
With stock markets around the world sliding sharply—Wall Street saw its worst week since the pandemic—Beijing warned Washington against using trade as a geopolitical weapon. The Chinese foreign ministry said the reaction from investors sent a clear message: “The market has spoken.”
Chinese Foreign Ministry spokesperson Guo Jiakun in a social media post accompanied by images of the week’s market rout, said:“Now is the time for the U.S. to stop making wrong choices.”
The escalating trade tensions stem from President Donald Trump’s latest round of 34% tariffs on Chinese imports, raising total duties on Chinese goods this year to 54%. The move also included shutting down a loophole that allowed small parcels from China to enter the U.S. untaxed.
Beijing Hits Back Hard
In retaliation, Beijing imposed mirror tariffs on U.S. exports and introduced restrictions on select rare earth materials, adding fuel to a trade conflict already straining the world’s two largest economies. These countermeasures triggered a steep global selloff, with the S&P 500 closing down 9% for the week.
In a statement carried by Xinhua, China’s state-run news agency, officials called the U.S. actions a threat to global economic stability and a violation of the principles underpinning international trade. “Tariffs should not be tools of suppression,” the statement read. “The United States must cease undermining China’s right to pursue legitimate development.”
China pledged to “take all necessary steps” to defend its sovereignty and development interests, adding that it would not hesitate to act again if provoked.
Hong Kong Stays Neutral
Chinese trade associations representing key sectors—including metals, electronics, textiles, and agriculture—issued coordinated statements denouncing the tariffs. Food industry leaders urged exporters to strengthen internal cooperation and pivot to new markets across Asia, Africa, and Latin America.
Meanwhile, Hong Kong’s Financial Secretary Paul Chan said the city would not impose any retaliatory measures of its own, stressing its position as a free port and open economy. “Maintaining the free flow of capital and goods is our core advantage,” Chan said in an interview with RTHK. “We remain committed to a rules-based global trade system.”
Otherwise, for now, the global response is clear: rising tariffs, deepening divides, and markets in freefall — with no resolution in sight.