Sign up for the Supply Lines daily newsletter that monitors global trade for updates.

China criticized the US for its threat to increase tariffs and vowed to retaliate if the US proceeds, escalating tensions in the trade war between the world's leading economies. The Chinese Ministry of Commerce stated that the US decision is a mistake that highlights the US's blackmail tactics. China asserted that it will stand firm if the US continues down this path.

Both Beijing and Washington are set to impose higher tariffs on each other this week, with President Trump suggesting an additional 50% tariff on Chinese imports. The Chinese embassy in Washington emphasized that the US's aggressive approach towards China is not the correct way to handle the situation and that China will protect its interests.

The embassy spokesperson criticized the US for pursuing its own interests over international rules, stating that China will vigorously defend its rights without specifying further actions.