China decried as "blackmail" on Tuesday U.S. President Donald Trump's threat to add a further tariff of 50% on its goods, after he demanded that Beijing withdraw its plans for counter-tariffs.
If neither side blinks and Trump sticks to his plans, total new levies could climb to 104% this year on Chinese goods imported into the United States, escalating a trade war that has already spurred the biggest market losses since the pandemic.
"The U.S. side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmailing nature," China's commerce ministry said in a statement.
"If the U.S. insists on having its way, China will fight to the end."
Trump said he would impose the additional 50% duty on U.S. imports from China on Wednesday if Beijing did not withdraw the 34% tariffs it had imposed on U.S. products last week.
Those Chinese tariffs, in turn, had come in response to 34% "reciprocal" duties announced by Trump.
The average U.S. tariff on Chinese goods is already set to climb to 76% following Trump's levies last week, which hit China with a tariff of 34%, in addition to 20% he previously imposed this year.
The moves have led economists to question whether the White House stands to gain much from hiking rates further.
"Since China already faces a tariff rate in excess of 60%, it doesn't matter if it goes up by 50% or 500%," said Xu Tianchen, senior economist at the Economist Intelligence Unit.
"What China can do is stop U.S. farming purchases, match U.S. tariffs and expand its export controls across the periodic table of chemical elements," he added.
