During a phone call with European Commission President Ursula von der Leyen, Chinese Premier Li Qiand affirmed Beijing in equipped to handle any external shocks brought on by Trump’s 104% tariff announcement.
Chinese Premier Li Qiang expressed confidence in China’s ability to withstand external economic shocks following the announcement of sweeping new tariffs by US President Donald Trump. On Wednesday, the Trump administration confirmed a 104% tariff on all Chinese imports, marking a significant escalation in trade tensions.
During a phone call with European Commission President Ursula von der Leyen on Tuesday, Chinese Premier Li Qiang stated that China is well-equipped to “fully offset” any negative external shocks. He reaffirmed his confidence in the country’s ability to maintain “sustained and healthy economic development” in 2025, despite the latest tariff threat from the US President.
Despite the move, Li maintained an optimistic outlook for China’s economy in 2025. In a phone call with European Commission President Ursula von der Leyen on Tuesday, he stressed that China’s macroeconomic policies for the year had been carefully formulated with various global uncertainties in mind. He added that China remains firmly committed to achieving steady and sustainable economic growth.
Li also criticised the US action, describing it as a clear example of unilateralism, protectionism, and economic coercion. He stated that China’s firm response is aimed not only at protecting its own interests, but also at upholding international trade rules.
The call between Li and von der Leyen took place just hours before the new tariffs were due to take effect. While China faces a 104% surcharge on all exports to the US starting at 12:01 am on 9 April, European goods will also be subject to an additional 20% levy. A US official confirmed to Bloomberg that the administration is moving forward with the plan.
Chinese Premier Li Qiang stated that China’s firm response to the latest US tariffs is aimed not only at safeguarding its own interests but also at upholding international trade rules.
“Protectionism leads nowhere – openness and cooperation are the right path for all,” Li told European Commission President Ursula von der Leyen, according to a Bloomberg report. His remarks came as China and the European Union braced for the impact of US President Donald Trump’s new round of so-called reciprocal tariffs. Europe now faces an additional 20 per cent levy, while Chinese goods are subject to a 104 per cent surcharge.
The China-EU call took place just hours before the tariffs came into effect. Beijing had already voiced strong opposition to the move, while Trump remained defiant, even as major US stock indexes fell sharply again on Tuesday.
Trump’s tariff tirade
The global economy has been jolted since Trump’s baseline 10 per cent tariffs came into force over the weekend, sparking a widespread market sell-off and fuelling fears of a global recession. From Wednesday, tariffs on imports to the United States from dozens of countries are set to rise even further.
President Trump argues that the tariffs will help restore America’s lost manufacturing sector by encouraging companies to relocate production to the US. However, many business leaders and economists have cast doubt on the effectiveness of this strategy, warning that higher import costs are likely to drive up inflation and hurt consumers.
