Tariff standoff intensifies: China rallies allies as Trump's trade war narrows to US vs Beijing

In a dramatic escalation of the global trade standoff, China is rallying international support in response to US President Donald Trump’s steep new tariffs — but it’s finding limited success as countries weigh economic pragmatism against political allegiance.

This week, the White House hiked tariffs on Chinese imports to a staggering 125%, accusing Beijing of unfair practices. China struck back almost immediately, slapping 84% tariffs on American goods. The sharp exchange marks a deepening of hostilities that now seems focused squarely on a US-China collision course — with the rest of the world caught in the crossfire.

Despite Trump's initial broad approach — targeting multiple trading partners — he pulled back on most nations this week, offering a 90-day pause to encourage direct talks. "Countries are lining up to negotiate," he said Wednesday, acknowledging market turmoil.

But China is refusing to blink.

“China will fight to the end,” declared commerce minister Wang Wentao in a pointed video call with EU Commissioner Maroš Šefcovic. "The US is acting like a bully... trampling on WTO rules , global stability, and the multilateral system."

Foreign ministry spokesperson Lin Jian added, “A just cause receives support from many. The US cannot win the support of the people and will end in failure.”

So far, China has focused its diplomacy on Europe. Premier Li Qiang’s call with European Commission President Ursula von der Leyen was described by Chinese state media as a “positive message”, aimed at strengthening China-EU trade ties. Li also pledged more support for global investors and said China is ready to counter uncertainties with “incremental policies.”

Reaching beyond Europe

Wang also reached out to Southeast Asian nations and held talks with ASEAN members, while Li met business leaders to reinforce China’s readiness. However, the outreach is being met with mixed responses.

Australian PM Anthony Albanese brushed off calls for a united front, saying, “We stand on our own two feet.” Australia has had a strained relationship with China since 2020, when it called for an independent probe into Covid-19’s origins — leading to Chinese trade restrictions.

India is also reportedly unwilling to join China’s cause, and even Russia — often aligned with Beijing — remains conspicuously absent from the tariff list. Meanwhile, Taiwan, hit with 32% US tariffs, is preparing for talks with Washington. Foreign minister Lin Chia-lung confirmed that discussions are underway, emphasizing Taiwan’s vital role in global chip production.

In Hong Kong, China’s foreign ministry issued a scathing rebuke of US pressure tactics. “A tariff-wielding barbarian… can never expect that call from China,” spokesperson Huang Jingrui wrote in an op-ed in the South China Morning Post.

Markets swing wildly

Despite the uncertainty, global markets surged Thursday on Trump’s temporary retreat. Japan’s Nikkei jumped over 9%, while Germany’s DAX rose 7.5%. France’s CAC gained 7.2%, and London’s FTSE 100 climbed 5.4%. However, US futures slipped — the S&P 500 fell 0.4% and the Dow Jones edged down 0.2% — as investors processed the long-term implications.

Chinese stocks rose modestly, cautious amid tit-for-tat tariff hikes and warnings of non-tariff reprisals, including potential bans on US films and service industries.

What’s next?

While Trump hinted at case-by-case negotiations ahead, tensions remain high. “We will not sit idly by,” Lin warned. “China will defend its rights and resist unilateral coercion.”

With the world watching and global trade at a crossroads, the showdown now centers on whether China’s strategy of multilateral resistance — or Trump’s gamble on direct confrontation — will win the day.

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