Who Will Blink First? Washington, Beijing in a Battle of Wills Over Tit-for-Tat Tariffs

Trump, Xi Appear Unlikely to Back Down as They See Their Authority Being Challenged

- Bhagyashree Garekar

WASHINGTON - Relations between the world's two largest economies are at a dangerous impasse after China doubled down on its threat to retaliate against US President Donald Trump's reciprocal tariffs.

It is hard not to see it as a battle of wills between Chinese President Xi Jinping and Mr Trump. Both leaders have for years pursued world-changing goals and have a lot to lose if they are seen as weak by their political constituents.

China reacted within hours to Mr Trump's threat of escalating tariffs by an additional 50 per cent unless Beijing scraps the retaliatory 34 per cent tariff it announced on US goods last week.

If Mr Trump carries out his threat, China will face a stack of tariffs on April 9: the 50 per cent plus the 34 per cent "reciprocal" tariffs announced on April 2, coming on top of the 20 per cent already imposed because the White House says China has failed to cooperate in curbing fentanyl trafficking. In total, the tariffs would amount to a whopping 104 per cent.

But China appeared unfazed. Its Commerce Ministry said on April 8 that it "resolutely opposes" the threat.

"The US threat to escalate tariffs on China is a mistake on top of a mistake," the Chinese statement said. "China will never accept it. If the US insists on its own way, China will fight to the end."

A "true trade war" is now at hand, said Professor Dennis Wilder, who teaches at the Walsh School of Foreign Service and is a senior fellow in the Initiative for US-China Dialogue on Global Issues at Georgetown University.

And neither Mr Trump nor Mr Xi is likely to back down.