China vows counterattack against U.S. tariffs labeled as blackmail

On April 2, 2025, China reacted strongly against the impending reciprocal tariffs imposed by the United States. Chinese Foreign Minister Wang Yi announced that China would retaliate if the U.S. continued what he described as 'blackmail' regarding tariffs. This statement was made in the context of Donald Trump’s administration's efforts to impose new tariffs as part of broader measures aimed at curbing illegal immigration and intellectual property theft, alongside a desire to disrupt the flow of fentanyl-related chemicals into the U.S. In addition to announcing its counteroffensive, China is also exploring collaboration with its regional allies, particularly Japan and South Korea. Both countries are significant players in the automotive and steel sectors, supplying the U.S. market. Wang Yi emphasized the need for a coordinated response, urging these nations not to align with American strategies that compromise their economic interests. Although Japan and South Korea have not publicly committed to cooperating with China, preliminary discussions about a trilateral free trade agreement have been initiated after a hiatus of five years. These talks reportedly focused on supply-chain cooperation and export controls. The economic landscape in China indicates that the tariffs come at a turbulent time, as the Chinese economy has been struggling with stagnant growth and high youth unemployment. Since the beginning of March, China has faced its own tariffs imposed by the U.S.— a 20% tax on goods sold to America. This pressure adds to the existing economic strain China faces, complicating its manufacturing and export sectors, which rely heavily on trade with the United States. In this increasingly tense backdrop, China is expected to not only retaliate against U.S. tariffs but also to seek alliances that could bolster its trade situation. The negotiation sessions with Japan and South Korea are an attempt to solidify trade relationships that could offset some of the damage from U.S. tariffs and help stabilize its economic standing amid rising global tensions.