Trump's Tariffs Prompt China To Vow 'Countermeasures': Experts See Retaliation Likely

President Donald Trump rocked global markets on Wednesday with tougher-than-anticipated tariff announcements as part of his plan to reset U.S. trade policy. The measures include a 34% tariff on imports from China, raising the total duties on Chinese goods to 54% and prompting swift criticism from Beijing.

The Details: Just hours after President Trump’s tariff announcement, China’s Ministry of Commerce issued a statement that it “firmly opposes” the tariffs and “will resolutely take countermeasures to safeguard its own rights and interests,” per Nikkei Asia. 

Read Next: Trump Slaps 25% Tariffs On Autos: What It Means For Your Next Car Purchase 

“The so-called ‘reciprocal tariffs,’ which are based on subjective and unilateral assessments by the United States, are not in line with the rules of international trade, seriously jeopardize the legitimate rights and interests of the parties concerned, and are typical of unilateral bullying,” the ministry added. 

The Ministry of Commerce did not provide specifics on what “countermeasures” it has planned, but experts agree retaliatory measures are likely. 

Expert Ideas: “We think the Chinese government is likely to retaliate with some targeted tariffs on US products as well as non-tariff measures like export controls,” Goldman analyst Andrew Tilton wrote, per ZeroHedge. 

The analyst also noted he expects China’s policymakers to resist significant currency depreciation and thinks Beijing will step up easing measures to offset the drag from higher tariffs.

“Beijing has purposefully kept more in reserve, both in terms of domestic stimulus and retaliatory measures, in case it needs to respond more forcefully,” Ruby Osman, a China expert at the Tony Blair Institute for Global Change, told Reuters. 

Stocks To Watch: Shares of U.S.-listed Chinese companies were trading lower Thursday morning amid global market declines with Alibaba Group Holding Ltd. BABA down 3.19% and JD.com Inc. JD down 5.26%. 

The iShares China Large-Cap ETF FXI, tracking the FTSE China 50 Index, was down 1.86% and the KraneShares CSI China Internet ETF KWEB, focusing on Chinese internet companies, was down 2.63%. 

Read Next: 

Photo: Shutterstock/Bigc Studio