BEIJING/WASHINGTON: The escalating trade standoff between the United States and China took another tense turn on Thursday as China’s foreign ministry dismissed Washington’s sweeping new tariff hikes of up to 245% on Chinese imports, warning it would refuse to engage in a “numbers game.” The stern response came after the White House announced late Tuesday that Chinese imports would face individualised tariffs, peaking at 245%, following Beijing’s retaliatory tariffs and export restrictions on critical materials. “If the United States continues to play the tariff numbers game, China will pay no attention to it,” a foreign ministry spokesperson stated, according to Reuters. The remark signaled Beijing’s growing impatience with Washington’s tariff brinkmanship, even as markets reeled from the sharp escalation.

Tariff War Reaches New High

The tariff increases mark the most severe trade penalties since the U.S.-China trade war began in 2018. Initially, Trump’s administration levied 10% tariffs on a wide range of imports earlier this month. But after China retaliated by raising tariffs on U.S. goods to 125% and filing a lawsuit at the World Trade Organization (WTO), Washington responded with the unprecedented 245% rates. A White House fact sheet defended the move, accusing China of restricting exports of rare earth metals and materials vital to high-tech, defense, and aerospace industries, including gallium, germanium, antimony, and six heavy rare earths. “China this week suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies, and military contractors,” the statement claimed.

Global Trade System Under Strain

In its rebuke, China accused the U.S. of undermining the global trade order. “American tariffs go against the whole world,” Beijing warned, adding that the hikes would “seriously damage the rules-based multilateral trading system.” The diplomatic fallout extended to Beijing’s appointment of a new trade envoy, Li Chenggang, signaling its intent to recalibrate its strategy amid the intensifying economic conflict. Meanwhile, the U.S. maintained that other countries had shown willingness to negotiate new bilateral deals, noting that more than 75 nations had approached Washington since the tariffs were announced — a claim China dismissed as propaganda.

Markets and Analysts on Edge

The relentless tit-for-tat has left markets volatile and investors uncertain. Analysts warn that the standoff risks disrupting global supply chains for critical industries, from electric vehicles and semiconductors to aerospace and defense systems. “We are entering dangerous territory,” one international trade expert in London remarked. “A 245% tariff is essentially a blockade by price. Neither economy can absorb this indefinitely.”

What’s Next?

While President Trump hinted Thursday at dialing back tariff rates to avoid hurting U.S. consumers, Beijing’s hardening stance suggests talks remain a distant prospect. Both sides appear dug in, with TikTok’s U.S. divestment deal also indefinitely delayed amid the broader trade impasse. The international community watches warily as the two economic giants lurch between escalation and negotiation, aware that the next move could either defuse the conflict — or drive it to a breaking point.