China Vows to ‘Fight to the End’ Against U.S. Tariffs

Level: Intermediate
Date: April 8, 2025

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Escalating Tensions

China has strongly responded to new US tariff threats on Chinese imports. President Trump proposed a significant increase, targeting products like electronics and steel. In response, China declared that it would “fight to the end” to defend its national interests, calling the U.S. actions unfair and aggressive.

Economic Impact

This sharp escalation has made global investors and trade partners nervous. Both China and the U.S. are central to the global supply chain, and their trade war could slow economic growth worldwide. For example, stock markets in Asia and Europe reacted negatively to the news, and some multinational companies began to reevaluate their supply routes and pricing.

China’s Countermeasures

To reduce the damage caused by U.S. tariffs, China allowed its currency—the renminbi—to depreciate to its lowest point in 20 months. This makes Chinese goods cheaper for foreign buyers. Additionally, China is offering tax breaks to export companies and encouraging domestic consumption to balance the effects of lost exports.

Possible Consequences

Experts warn that repeated retaliations, like more tariffs or strict import/export rules, may damage not only the two countries’ economies but also the confidence of global businesses. If both sides continue this “tit-for-tat” approach, supply chain costs could rise and inflation may increase in several countries.

Looking Forward

Many hope that leaders from both countries will return to the negotiating table to find common ground. A peaceful agreement would help stabilize the markets and build trust among international trade partners. For now, businesses and governments around the world are watching closely, hoping to avoid a long-term standoff that could reshape global trade.

Vocabulary List

Tariff (noun) – A tax imposed on imported goods. (e.g., The government increased tariffs on imported steel.)
Escalation (noun) – The act of becoming more intense or severe. (e.g., Escalation in the trade dispute worried investors.)
Depreciate (verb) – To decrease in value. (e.g., The currency depreciated rapidly during the crisis.)
Retaliation (noun) – Act of returning an attack; revenge. (e.g., The tariffs were imposed in retaliation for unfair practices.)
Devaluation (noun) – Reduction in the value of a currency. (e.g., Currency devaluation helped boost exports.)
Countermeasure (noun) – Action taken to counteract another action. (e.g., New security measures were countermeasures against threats.)
Standoff (noun) – A situation where neither party can win or progress. (e.g., Negotiations ended in a standoff.)
Stability (noun) – The state of being steady or stable. (e.g., Political stability attracts investors.)
Sanction (noun) – Penalties imposed by one country on another. (e.g., Economic sanctions impacted the nation severely.)
Resolution (noun) – A solution or settlement. (e.g., Both countries aimed for a quick resolution.)

Discussion Questions

Why has China vowed to “fight to the end” against U.S. tariffs?
What are the global impacts of a trade war between major economies?
How can currency depreciation help a country’s exports?
What risks are associated with continuous trade retaliations?
How can countries resolve trade disputes peacefully?

Topic Discussion Questions

Have you seen any direct effects of trade disputes in your industry?
How important is international trade cooperation for economic growth?
What strategies can countries use to avoid trade conflicts?
How can businesses protect themselves from the impacts of trade wars?
Should countries prioritize national interests or global economic stability?

Related Idiom

“Tit for tat” – An equal retaliation; responding to an action with an equivalent one. (e.g., The trade war escalated with tit for tat tariffs.)

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