China Tells Trump to Cease ‘Threatening and Blackmailing’ Over Trade Dispute

BEIJING, 16 April 2025 (BSS/AFP) – China issued a strong rebuke to the United States on Wednesday, urging President Donald Trump to cease “threatening and blackmailing” tactics, after Washington signalled that Beijing must make the first move in resolving their ongoing trade war.

President Trump, known for his aggressive use of tariffs, has placed a hefty 145 percent tariff on a wide range of Chinese imports this year alone. These measures build upon earlier duties and have sparked sharp retaliatory tariffs from Beijing—currently at 125 percent on numerous American goods.

“If the United States truly wishes to resolve the dispute through dialogue, it must halt its use of extreme pressure and unilateral coercion,” said Chinese foreign ministry spokesperson Lin Jian. “Negotiations must be based on equality, mutual respect, and shared benefit.”

Lin reiterated China’s long-standing stance that trade wars benefit no one. “China does not seek confrontation, but we are not afraid of defending our interests,” he stated.

Earlier this year, the Trump administration introduced a layered tariff structure, beginning with 20 percent levies linked to China’s alleged involvement in fentanyl trafficking, and subsequently adding another 125 percent due to what Washington describes as unfair trade practices. However, exemptions have been carved out for select tech products such as smartphones and laptops, possibly to shield US consumers from higher retail prices.

On Tuesday, the White House underscored that Beijing must take the initiative to end the dispute. Press Secretary Karoline Leavitt, reading from a statement by President Trump, said, “The ball is in China’s court. They need a deal; we do not.”

Stronger Economic Numbers From China

Despite mounting trade tensions, China reported a surprisingly robust 5.4 percent growth in GDP during the first quarter of 2025. Analysts attribute this boost to manufacturers racing to export goods ahead of impending US tariffs.

However, experts warn the outlook may sour in the coming months. “The second quarter could see a slowdown as US firms shift supply chains and reduce Chinese imports,” noted Heron Lim of Moody’s Analytics. “Investment decisions will likely be delayed due to rising uncertainty.”

Global Ripple Effects

The escalating tariff war is not limited to bilateral effects. Japan and South Korea, key players in global tech and automotive industries, are also feeling the pressure.

Japan’s trade envoy, Ryosei Akazawa, arrived in Washington on Wednesday for talks with US Treasury Secretary Scott Bessent. Akazawa expressed hope for a “win-win” resolution, though he vowed to “protect our national interest.”

In a related move, Honda announced it would relocate production of its hybrid Civic model from Japan to the United States, emphasising that the decision was not driven by any one factor. “Our company’s philosophy has always been to manufacture where demand exists,” a spokesperson said.

Meanwhile, South Korea’s finance minister, Choi Sang-mok, confirmed plans to meet Bessent next week. “Our goal is to use diplomacy to delay retaliatory tariffs and reduce uncertainty for Korean businesses operating globally,” Choi remarked.

High-Tech and Minerals in the Crosshairs

Further complicating the landscape, Trump’s administration has extended certain tariff exemptions to spare high-demand consumer tech from the broad 10 percent global tariff and China-specific 125 percent levy.

Nonetheless, technology stocks across Asia dipped sharply after Nvidia revealed it could suffer a $5.5 billion revenue loss due to new US licensing requirements that restrict chip exports to China.

On Tuesday, President Trump also launched a fresh probe into the import of critical minerals and rare-earth elements, essential components in the production of electronics, electric vehicles, and defence technology. The investigation could pave the way for further tariffs on items such as smartphones and batteries.

A Precarious Global Trade Climate

With the Trump administration’s return to protectionist policies, tensions have reignited across the global trade system. Analysts warn that sustained escalation could derail the fragile post-pandemic recovery and risk plunging the world economy into another downturn.

While Beijing maintains that cooperation remains its preference, Wednesday’s sharp rhetoric highlights the deepening rift between the world’s two largest economies — a divide that will not be easy to mend.