Inside Donald Trump's 'global game of chicken' as US president hits China in trade war

Donald has unleashed a "global game of chicken" after threatening in a tense - with Beijing refusing to back down and promising to "fight to the end". There are increasing fears and the US are now in a high-stakes game of who blinks first after Trump threatened an additional 50% tariff on Chinese imports if it does not back down on Tuesday. The threat comes after "Liberation Day" last week where Trump said he would slap a 34% tariff on Beijing, prompting the second-largest economy in the to say it would "fight to the end" and take countermeasures against the US to safeguard its own interests, much to the anger of Trump.

“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social on Monday. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”

The Commerce Ministry said the US‘s demand of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice.” “The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said. “The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end,” it added.

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Why has Trump announced tariffs?

announced sweeping tariffs on goods imported from the rest of the world in a bid to "rebalance the economy." He claims the tariffs on all nations will help the US economy and protect jobs. Trump has argued the US should use its tariffs to help US consumers to buy more American-made items, which would increase the amount of tax raised and see more investment into the country. Trump claims the US has been taken advantage of by "cheaters."

The US total goods trade with China were an estimated $582 billion (£498bn) in 2024, making it the top trader in goods with the US. The 2024 deficit with China in goods and services trade was between $263 billion and $295 billion.

Why has Trump threatened China with more tariffs?

President Trump slapped a 34% tax on Chinese imports last Wednesday as part of his "Liberation Day." The US exports oilseeds, grains, aircraft machinery and pharmaceuticals to China, while Beijing exports toys, vechiles, equipment, computers, electrical products and furniture to the US.

However, China hit back with its countermeasure of 34% on Sunday, prompting Trump to threaten them with an extra 50% tariff on goods imported into the US if it does not withdraw its counter-tariff today. On Monday, Trump said he would give China until Tuesday to ditch its threat or face the 50% tax. “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”

The Chinese embassy in the US accused Washington of "economic bullying", and said that Beijing "will firmly safeguard its legitimate rights and interests". However, if Trump goes ahead with his threat, the US could face a staggering total rate of 104% on Chinese imports - in addition to the 20% tariffs already imposed in March and the 34% announced at the White House last week.

What happens if China and the US refuse to back down?

If Trump is true to his word and doesn't back down on his threat to China today, there are huge fears of a trade war between the world's two biggest economies. Trump said China had introduced its countermeasure "despite my warning that any country that retaliates against the US by issuing additional tariffs... will be immediately met with new and substantially higher tariffs".

However, Beijing hit back, and said they would not be pressured into backing down, adding "pressuring or threatening China is not a right way to engage. "The US hegemonic move in the name of 'reciprocity' serves its selfish interests at the expense of other countries' legitimate interests and puts 'America first' over international rules," Chinese embassy spokesman Liu Pengyu said in a statement. "This is a typical move of unilateralism, protectionism and economic bullying."

Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.

Trump shrugged off the global markets in freefall and insisted the tariffs should have been done "decades" ago. Trump's post on Truth Social read: "The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!"