Chinese PM Li on Trump's 104% tariffs; Beijing has 'sufficient policy tools' to handle headwinds

Li says China can withstand Trump’s 104% tariffs confidently.

Chinese Premier Li Qiang, in a call with European Commission President Ursula von der Leyen, asserted that China has "a sufficient reserve of policy tools" to counter economic challenges following U.S. President Donald Trump’s sweeping 104% tariffs on Chinese imports.

According to state news agency Xinhua, Li stated, "China's macroeconomic policy this year takes full account of various uncertainties... and is fully confident of maintaining sustained and healthy economic development." He added that Beijing can "fully hedge against adverse external effects," underscoring China's confidence in its economic resilience despite mounting global pressures.

Tensions between the two nations continue to rise. Beijing has vowed to retaliate against Washington’s “reciprocal" tariffs, while Trump maintains that “China also wants to make a deal, badly.” He added, “They want to make a deal, badly, but they don't know how to get it started.” Trump said he is waiting for a call from Beijing, and White House Press Secretary Karoline Leavitt noted that he “will be gracious” if China reaches out.

Despite a sharp market downturn, Trump remains committed to his aggressive trade strategy, which has shaken the global economy. In response, Beijing plans to impose 34% tariffs on U.S. imports starting Thursday, escalating the standoff between the world’s two largest economies.

As investors grappled with the fallout from Trump’s trade war, U.S. stocks plunged further on Tuesday despite an early rally of 4.1%. The S&P 500 initially dropped 3% before paring losses to close down 1.6%, leaving the index nearly 19% below its February peak. The Dow Jones Industrial Average shed 320 points, or 0.8%, after surrendering an earlier surge of 1,460 points. Meanwhile, the Nasdaq Composite fell by 2.1%, reflecting continued market volatility.

(With AFP Inputs)