Trade Tension Escalates: China vs. USA

In response to Trump's proposed 50% tariff hike, China vows to counteract, setting up a significant standoff between the world's leading economies. The tariff hikes could increase U.S. levies on Chinese goods substantially, significantly impacting global supply chains and China's export market.

China has issued a staunch warning to President Donald Trump, asserting it will 'fight to the end' should he proceed with a planned 50% tariff increase. This move could trigger an intense trade standoff between the world's two largest economies, with potential ramifications for global supply chains.

The prospect of heightened tariffs has already strained Chinese exporters financially, emphasizing U.S. determination to dominate the consumer market and marginalize China economically. China's Commerce Ministry describes these actions as 'a mistake on top of a mistake,' highlighting the perceived blackmailing tactics of the U.S.

As President Xi Jinping prepares for discussions with Spanish Prime Minister Pedro Sanchez, analysts warn of the potential derailment of China's economic recovery. Meanwhile, efforts to stabilize the Chinese economy continue, with state entities increasing investment and the central bank pledging support to stave off market instability.

(With inputs from agencies.)