In a rising wave of tension between two of the world’s largest economies, China has called for calm and cooperation after the U.S. announced a new round of steep tariffs on Chinese goods. The Chinese government described the move as unfair and harmful, warning that it could further destabilize global trade.

The U.S., under former President Donald Trump’s influence, recently imposed additional tariffs of 34% on a wide range of Chinese imports. These tariffs are part of a renewed effort to pressure China on trade practices, which the U.S. claims are unbalanced and harmful to American industries. China, however, sees these actions as protectionist and says they break international trade rules.

China’s Reaction and Countermeasures

Following the U.S. announcement, China responded by putting in place its own set of tariffs, also around 34%, on American goods. These include several agricultural products that are crucial exports for the U.S. China also announced tighter export controls on rare earth minerals, which are vital for many U.S. industries, especially in tech and defense.

In addition to these measures, China’s Ministry of Commerce filed a formal complaint with the World Trade Organization (WTO), stating that the U.S. is violating global trade agreements. Chinese officials said that solving issues through threats and economic pressure is not the right way forward and that such strategies will not succeed with China.

Economic Impact and Government Strategy

The trade conflict has already begun to affect financial markets in Asia. On the Monday following the announcement, major stock markets in China saw sharp declines. The Shanghai Composite Index fell by more than 6%, while Hong Kong’s Hang Seng Index dropped by over 10% in early trading.

Economists in China warned that the new tariffs could reduce the country’s GDP growth by up to 2% this year. In response, the Chinese government is preparing a range of support measures to help the economy absorb the shock. These could include lower interest rates, increased government spending, and new policies to encourage local consumption and investment.

Beijing is also looking at ways to protect and support Chinese exporters, many of whom rely heavily on the American market. Authorities say they are ready to make “extraordinary efforts” to soften the impact of this trade war.

Voices from the Business Community

Many Chinese business owners, especially those who trade with the U.S., have expressed deep concern about the tariffs. In Yiwu, one of China’s largest wholesale markets, sellers are worried that American buyers will stop placing orders or demand big discounts to make up for the tariff cost.

One trader said, “We’re being forced to either raise our prices and lose customers or cut our profits to survive. Either way, it’s a tough situation.”

Despite this, the Chinese government is urging calm. Officials have encouraged local businesses to diversify their markets, look for new opportunities in other regions, and focus more on domestic demand.

International Reactions

China is not alone in criticizing the U.S. approach. Several countries and trade groups have expressed concern about Washington’s decision to increase tariffs. Officials in Hong Kong described it as a form of economic bullying, while other Asian nations like Indonesia and Pakistan called for peaceful talks and cooperation.

Germany, anticipating these developments, had already begun redirecting some of its exports to other regions to avoid becoming caught in the crossfire.

ASEAN (Association of Southeast Asian Nations) members are also said to be planning a coordinated response to help protect regional trade stability.

China Calls for Dialogue

While China is preparing strong countermeasures, it also says it is open to discussion. Officials have urged the United States to come back to the negotiation table and handle trade differences through dialogue based on fairness and mutual respect.

China’s Foreign Ministry stated that the root of the problem lies in the U.S. adopting a one-sided approach that ignores international rules. They stressed that both sides should focus on finding balanced solutions that benefit their economies and avoid further disruptions to the global supply chain.

As part of its response, China also added two U.S. companies — PVH Group and Illumina Inc. — to its “unreliable entity list,” citing actions that go against fair market practices. These firms could face restrictions when doing business in China.

What Comes Next?

The latest clash between the U.S. and China is a sign that trade tensions are far from over. With both nations imposing tariffs and setting up restrictions, the global economy could feel the effects for months to come.

For now, China is urging all countries, not just the U.S., to respect global trade rules and work together to maintain fair and open markets. As this trade dispute unfolds, businesses, investors, and governments around the world will be closely watching for signs of compromise—or further conflict.