China has hit back at President Donald Trump’s vow to impose further tariffs with a stark warning that Beijing is ready for a tariff war or ‘any other type of war’.

Trump, 78, aims to dramatically expand tariffs after a 25 per cent tax on imports from Mexico and Canada took effect Tuesday, along with fresh duties on Chinese goods.

The president, in his Tuesday night address to Congress, revealed that further tariffs would follow on April 2, including ‘reciprocal tariffs’ and non-tariff actions aimed balancing out years of trade imbalances.

But China’s foreign affairs ministry defiantly shot back, stating ‘if war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end’. The Chinese Ambassador in the US doubled down on threat by sharing the same remark.

The tariffs, which could upend nearly $2.2trillion in annual trade, came after Trump declared America’s top three trading partners had failed to do enough to stem the flow of fentanyl and its precursor chemicals into the US.

Beijing, however, refutes the allegations and in its scathing response to Trump said branded the fentanyl crisis a ‘flimsy excuse’ to increase tariffs on Chinese products.

The foreign affairs ministry accused the Trump Administration of ‘blackmail’ and warned that ‘Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China’.

The warning comes amid fears of sparking trade wars that could slam economic growth and raise prices for Americans still smarting from years of high inflation.

President Donald Trump, in his address to Congress last night, revealed he plans dramatically expand tariffs after a 25% tax on imports from Mexico and Canada took effect Tuesday, along with fresh duties on Chinese goods. He said further tariffs would follow on April 2, including ‘reciprocal tariffs’ and non-tariff actions aimed balancing out years of trade imbalances

But Beijing defiantly shot back, stating ‘if war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end’. Pictured: Chinese President Xi Jinping at the Great Hall of the People, in Beijing, China on March 5, 2025

Trump on Tuesday night reiterated his intention to impose additional reciprocal tariffs next month, a move that would likely roil financial markets even more.

‘Other countries have used tariffs against us for decades, and now it’s our turn,’ he said, citing high duties imposed on US goods by India, South Korea, the European Union, China and others.

Beijing, however, warned against the proposal in a statement from its foreign affairs ministry that was posted to X.

‘Anyone using maximum pressure on China is picking the wrong guy and miscalculating,’ a ministry spokesperson said.  

‘If the US truly wants to solve the fentanyl issue, then the right thing to do is to consult with China by treating each other as equals.’ 

The spokesperson also denounced China’s alleged involvement in the deadly fentanyl crisis, saying ‘the US not anyone else, is responsible for the fentanyl crisis inside the US’.

‘In the spirit of humanity and goodwill towards the American people, we have taken robust steps to assist the US. in dealing with the issue. Instead of recognizing our efforts, the US has sought to smear and shift blame to China, and is seeking to pressure and blackmail China with tariff hikes,’ the statement continued.

‘They’ve been PUNISHING us for helping them. This is not going to solve the US’s problem and will undermine our counternarcotics dialogue and cooperation.’

Xie Feng, the Chinese Ambassador in America, echoed the foreign ministry’s remarks, saying ‘if the US truly wants to solve the fentanyl issue, then the right thing to do is to consult with China by treating each other as equals.’

The Embassy also doubled down on the ministry’s warning of war by sharing the same statement: ‘If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.’

Xie Feng, the Chinese Ambassador in America, took to X saying ‘if the US truly wants to solve the fentanyl issue, then the right thing to do is to consult with China by treating each other as equals.’ He also doubled down the foreign ministry’s warning of ‘war’

A cargo ship loaded with containers docks at Hong Kong International Terminal on March 4, 2025 after President Trump imposed new tariffs on imports from China, Canada, and Mexico, citing fentanyl smuggling and illegal immigration

Trump in the past has praised his relationship with Chinese President Xi Jinping and suggested China could help mediate international crises such as the war in Ukraine.

Beijing and Washington, however, have been locked in a tense economic competition since Trump’s first term, when relations shifted toward a more contentious rivalry.

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Trump and Xi discussed trade, fentanyl and TikTok in a phone call in January, just days before Trump’s inauguration – despite the US president having vowed throughout his presidential campaign to raise tariffs on Chinese goods.

Despite the then-threat of tariffs, Xi congratulated Trump on his second term and pushed for improved ties.

Xi, during the call, told Trump: ‘We both attach great importance to interaction, hope for a good start of the China-US relationship during the new US presidency and are willing to secure greater progress in China-US relations from a new starting point.’

Trump, afterwards, took to his platform Truth Social to say ‘the call was a very good one for both China and the USA’ and vowed the time that ‘President Xi and I will do everything possible to make the World more peaceful and safe!’

Trump had also extended an unusual invitation to Xi to attend his swearing-in ceremony, but Chinese Vice President Han Zheng instead came as Xi’s special representative.

Trump in the past has praised his relationship with Chinese President Xi Jinping, The pair are pictured together at the G20 leaders summit in Osaka, Japan, June 29, 2019

Trump extended an unusual invitation to the Chinese president to attend his swearing-in ceremony, but Chinese Vice President Han Zheng (pictured at Trump’s inauguration) instead came as Xi’s special representative

Canada and Mexico have also vowed to take action against the US in response to Trump’s tariffs.

Canadian Prime Minister Justin Trudeau described the tariffs as ‘a very dumb thing to do’ and hit back with 25 per cent tariffs on C$30billion ($20.7billion) worth of American imports, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances and motorcycles.

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Mexican President Claudia Sheinbaum vowed retaliation but without details, saying she would announce Mexico’s response on Sunday.

Commerce Secretary Howard Lutnick told reporters on Tuesday that US officials had spoken with Mexico and Canada ‘all day’ and might still work out a partial resolution with the two neighbors, adding that they needed to do more on the fentanyl front.

‘I think there’ll be some movement. It will not eliminate the tariffs … but it might modify the tariffs somewhat,’ he said, pointing to a decision on Wednesday.

Lutnick said Trump was considering providing some relief to companies that comply with rules under the US-Mexico-Canada Agreement on trade that is due for renegotiation in 2026.

The commerce secretary’s comments on negotiations lifted the Canadian dollar and the Mexican peso off of deep losses earlier on Tuesday, but Trump’s tariffs prompted a global stock sell-off.

China responded immediately, announcing additional tariffs of 10 to 15 per cent on certain US imports from March 10 and a series of new export restrictions for designated US entities. 

Later it raised complaints about the US tariffs with the World Trade Organization.

Canadian Prime Minister Justin Trudeau (pictured Tuesday) described the tariffs as ‘a very dumb thing to do’ and hit back with 25 per cent tariffs on C$30billion ($20.7billion) worth of American imports, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances and motorcycles

Mexican President Claudia Sheinbaum, pictured Tuesday, vowed retaliation but without details, saying she would announce Mexico’s response on Sunday

Trudeau said Canada would impose tariffs on another C$125billion of US goods if Trump’s tariffs were still in place in 21 days, likely to include motor vehicles, steel, aircraft, beef and pork. 

Canada also will challenge the US tariffs under rules of the WTO and the US-Mexico-Canada free trade agreement.

‘They’ve chosen to launch a trade war that will, first and foremost, harm American families,’ Trudeau said of the Trump administration.

Trudeau said that he believes Trump instead wants to weaken the Canadian economy to the point where Ottawa would consider annexation by the US.

Ontario Premier Doug Ford tore up a C$100 million contract with Elon Musk’s Starlink network, banned American firms from provincial government contracts and said that if Trump’s tariffs persist, he will apply a 25 per cent surcharge to Ontario electricity exports to the US.

‘Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!’ Trump wrote in a post on his private social media platform.

The tariffs are already sparking some US price increases, running counter to Trump’s election vow to bring down living costs for Americans.

Target CEO Brian Cornell told CNBC that the retail giant would increase prices ‘over the next couple of days’ on some seasonal grocery products such as avocados from Mexico.

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Electronics retailer Best Buy also warned of potential higher prices. The company’s CEO Corie Barry told analysts on a call that China remains the top source of products sold by the company, with Mexico in second place.

The 20 per cent tariff on Chinese imports will apply to several key Chinese electronics categories untouched by prior duties, including smart phones, laptops, video game consoles, smart watches and speakers and Bluetooth devices.

‘We estimate the tariffs could lead to a nearly $1,000 per household increase annually in the cost of goods,’ said Nationwide Mutual chief economist Kathy Bostjancic. ‘The strengthening dollar helps mitigate some of the inflation impact, which would otherwise be greater.’

An extra 10 per cent duty on Chinese goods took effect Tuesday, adding to a 10 per cent tariff imposed by Trump on February 4 and stacking on top of tariffs of up to 25 per cent imposed on Chinese imports during Trump’s first term.

Tariffs on some of these products increased sharply under former President Joe Biden last year. 

Shipping containers are stacked at the port in Ensenada, Baja California state, Mexico on March 4, 2025 as President Donald Trump’s tariffs on Canada and Mexico take effect

China’s retaliatory tariffs targeted a wide range of US agricultural products including certain meats, grains, cotton, fruit, vegetables and dairy products.

American farmers were hard hit by Trump’s first-term trade wars, which cost them about $27billion in lost export sales and conceded their share of the Chinese market to Brazil. 

The tariffs on Mexican and Canadian products could have deep repercussions for a highly integrated North American economy and halt years of surprising resilience for US growth.

The Federal Reserve Bank of Atlanta’s GDPNow model showed a stunning shift to a 2.8 per cent US GDP contraction in the first quarter, from a 2.3 per cent estimated growth last week.