U.S. response
Trump calls for 'calm'
U.S. President Trump has continuously posted on social media to reassure the public, stating, 'Stay calm! Everything will be fine, and America will be stronger than ever!' This statement is seen as a direct response to the Chinese countermeasures, attempting to alleviate domestic market panic caused by the escalation of tariff policies.
Economic pressures emerge: U.S. businesses and consumers will directly bear the cost of tariffs. According to Moody's estimates, the average annual expenditure for American households could increase by $1,300 to $5,000, pushing the CPI up by about 2% and exacerbating the risk of stagflation. The Atlanta Fed predicts that U.S. GDP may shrink by 2.4% in the first quarter of 2025.
International community's response
EU's strong countermeasures
The EU has implemented the first round of countermeasures against U.S. tariffs, imposing a 25% tariff on U.S. goods, and plans to formulate a second phase response plan. French Minister of Economy and Finance Bruno Le Maire emphasized that the EU's response will be 'measured and extremely tough,' warning that U.S. bullying behavior will further tear apart EU-U.S. relations.
Multi-country joint countermeasures
The EU, Japan, South Korea, and 160 other countries have complained to the WTO about U.S. tariff policies, Canada has restricted dairy imports, and the spillover effects of the trade war threaten the global economy. The World Trade Organization predicts that U.S. tariff policies may lead to a 1% decline in global merchandise trade volume by 2025, a downward adjustment of nearly 4 percentage points from previous forecasts.
China's position and actions
Legal countermeasures
The Chinese side has made a strong response to the U.S. unilateral bullying actions based on national tariff laws. The Ministry of Commerce has filed a lawsuit against the latest U.S. tariff measures under the WTO dispute resolution mechanism, emphasizing that U.S. actions seriously violate WTO rules and undermine the multilateral trading system.
Multi-dimensional countermeasures
In addition to increasing tariffs, the Chinese side has also included 6 U.S. entities in the unreliable entity list, prohibiting them from making new investments in China; 12 U.S. entities have been included in the export control list, prohibiting exports of dual-use items to them.
Market and industry impact
U.S. enterprises under pressure
Industries such as U.S. automobiles and generic drugs are experiencing skyrocketing costs due to reliance on Chinese supply chains, with General Motors and Tesla possibly facing layoffs. Farmers in the Midwest are seeing their incomes shrink due to a sharp drop in soybean exports, with government subsidies unable to make up for the losses.
China's industrial transformation
The Chinese side's countermeasures compel domestic enterprises to accelerate the expansion into emerging markets such as the "Belt and Road" Initiative, promoting the branding of clothing and the localization of semiconductors, thus upgrading high-end manufacturing industries. Despite the impact on labor-intensive industries like textiles and furniture, the cost-effectiveness of domestic alternatives such as new energy vehicles and domestic milk powder has improved.
Global governance and future outlook
Multilateral mechanisms under challenge
WTO Director-General Ngozi Okonjo-Iweala has expressed deep concern over U.S. tariff policies, fearing they may escalate into a trade war with a series of retaliatory measures, leading to further decline in global trade. Experts from multiple countries are calling for developing countries to unite in response and defend the multilateral trading system.
The necessity of cooperation and dialogue
The Chinese side has always emphasized that increasing tariffs is a passive countermeasure, urging the U.S. side to immediately correct its erroneous practices, cancel unilateral tariff measures, and resolve differences through equal dialogue. The international community generally believes that only by abandoning zero-sum game thinking can global economic stability and sustainable development be maintained.
This tariff escalation marks a new phase in the China-U.S. trade war, with spillover effects already impacting global supply chains and the multilateral trading system. In the future, whether the parties can resolve differences through dialogue and negotiation will directly affect the global economic recovery process and the future direction of the multilateral governance system.