China escalates countermeasures against US in tariff war, trying to be the “big brother” in leading the way?

The US government has announced an increase in actual tariffs on China to 54%, prompting a retaliatory response from the Chinese authorities with a 34% tariff increase on US goods and the implementation of a series of countermeasures. Experts suggest that China seems to be trying to project itself as the leader in a so-called anti-US alliance, but the effectiveness of their retaliation is limited by structural contradictions in the Chinese economy.

President Trump unveiled global benchmark tariffs on April 2nd and imposed higher equivalent tariffs on dozens of countries, with the actual tariff rate on China raised to 54%.

In response to the US’s announcement of equivalent tariffs, the Chinese government officially announced on April 4th that starting from April 10th, a 34% tariff will be levied on all imports from the US, and 16 American entities will be placed on an export control list, prohibiting 6 US companies from engaging in China-related import and export activities, and imposing export controls on 7 rare earth-related products.

President Trump responded to China’s retaliatory measures on his social media platform “Truth Social”, stating that Beijing has “made the wrong move.”

He said, “China (the CCP) has made the wrong move. They are in a panic – this (retaliatory tariffs) is something they cannot afford!” Trump pledged that his economic policies would “never change.”

Sun Guoxiang, a professor of international affairs and business at Nanhua University in Taiwan, told Epoch Times that China’s announcement of countermeasures aims to show strength, but the actual effects of the retaliation are limited by structural contradictions in the Chinese economy. For example, there is insufficient domestic substitution; while exports are affected, consumption and investment have not been able to fill the growth gap; and the window for catching up in technology is closing.

He believes that while China’s rare earth control may be a bargaining chip, the country still relies on imports in core areas such as semiconductors.

Taiwanese financial expert Huang Shicong also stated that the main issue is that China cannot be seen as conceding. However, many goods imported by China from the US cannot be replaced, such as some machinery equipment, crucial components, and chips. Thus, China’s retaliatory measures may end up rebounding the damage onto itself.

Huang Shicong believes that China’s so-called countermeasures may provoke Trump to escalate his offensive and further increase taxes on China. After escalating the tariff war, it may further devastate the Chinese economy.

In a press conference held by the Chinese Ministry of Foreign Affairs on Thursday, a foreign journalist asked whether the Chinese side “believes that the US tariff announcement in some way provides an opportunity for China to discuss joint responses with groups such as ASEAN and the EU?” Chinese spokesperson Guo Jiakun did not directly respond, but instead requested the US to “correct its mistakes.”

However, Vietnam, Indonesia, Thailand, the Philippines, and Malaysia have all expressed willingness to make adjustments and seek negotiations and cooperation with the US to achieve mutual trade benefits and ultimately bypass high tariffs.

Vietnam’s Ministry of Industry and Trade urged the Trump administration on April 4th to suspend tariffs on Vietnam and initiate negotiations. The statement stated that they hope Minister of Industry and Trade Nguyen Hong Yen can have a conversation with US Trade Representative Greer soon, suggesting that there is still “room for discussion and negotiation” between the US and Vietnam.

Sun Guoxiang believes that China’s mobilization capability towards so-called allies is limited, with most economies unwilling to get involved in the US-China confrontation, making it difficult to form an anti-tariff alliance. China’s countermeasures are unlikely to force the US to make comprehensive concessions in the short term.

Huang Shicong, on the other hand, believes that China’s significant counteraction against the US is politically motivated, seemingly wanting to portray itself as the leader in a so-called anti-US alliance. However, Trump has previously stated willingness to negotiate, and the positions of various countries may soften in the future. Ultimately, if it only results in China battling the US in a tariff war, it will be significantly detrimental to China.

Faced with the escalating US-China trade war, US Treasury Secretary Scott Bessent, in an interview with journalist Tucker Carlson on Friday, stated that without access to the US market, China would not be able to survive.