China vows to retaliate against Trump's Liberation Day 'bullying' and accuses US of 'violating trade rules' while SE Asia is left reeling from huge tariffs
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China has vowed to roll out 'firm countermeasures' in the face of Donald Trump's new tariffs, accusing the US President of 'violating trade rules' and trying to 'intimidate' the world.
No other country comes close to matching China's annual sales of more than $400 billion in goods to the United States each year.
But Trump hiked rates by an extra 34% on those goods last night as he unveiled the much-anticipated list of 'Liberation Day' tariffs, on top of a baseline tariff of 10% imposed on all goods imported into the US.
US tariffs 'do not comply with international trade rules and seriously harm the legitimate rights and interests of the relevant parties', the Commerce Ministry in Beijing said.
'History proved that raising tariffs will not solve US problems. There can be no winners in a trade war,' it continued, calling on Washington to 'immediately cancel unilateral tariffs' and stop 'endangering global economic development'.
It comes as countries across Southeast Asia scramble to manage the fallout of Trump's announcement yesterday.
Six of the nine Southeast Asian countries listed by Trump were slapped with much higher-than-expected tariffs of between 32% and 49%.
By comparison, the level for the European Union was 20%.
So far, none of the Southeast Asian nations have spoken of retaliatory tariffs, but are planning to seek talks with Washington given the rates could deal a brutal blow to their economies.
Countries such as Vietnam and Thailand are heavy exporters to the US, having benefitted as Chinese and international manufacturers shifted production to their economies to avoid levies on China that Trump imposed during his first term.
Holding up a chart with a list of targets, Donald Trump said the UK will face 10 per cent tariffs, and the EU will face more pain at 20 per cent. China will be battered with 34 per cent, and Japan 24 per cent
No other country comes close to matching China's annual sales of more than $400 billion in goods to the United States each year
US President Donald Trump ignited a potentially ruinous global trade war on April 2 as he slapped 10 percent tariffs on imports from around the world and harsh extra levies on key trading partners. (Pictured: workers producing garments at a textile factory for fast fashion e-commerce company Shein in Guangzhou, China)
China's President Xi Jinping attends the closing session of the National People's Congress (NPC) at the Great Hall of the People in Beijing
Vietnam, where companies like Apple, Nike and Samsung Electronics have large manufacturing operations, was hit with 46% levies and appears particularly exposed.
Its exports to the United States were worth $142 billion last year, nearly 30% of its gross domestic product.
Vietnamese Prime Minister Pham Minh Chinh ordered up a task force to address the situation after an urgent cabinet meeting early on Thursday, state media said.
He noted the country's 8% growth target for this year remained unchanged.
'Vietnam's export-driven growth model has been highly successful, attracting multinational companies... However, a 46% US tariff would directly challenge this model,' said Leif Schneider, head of international law firm Luther in Vietnam.
Vietnam has already made multiple concessions to Washington to avoid tariffs, and is likely to offer more in the coming days.
'I expect negotiations to continue on ways to reduce or mitigate the impact of any new tariffs,' said Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi.
Thai Prime Minister Paetongtarn Shinawatra said she hopes to bring down the 37% rate imposed on Thailand - far greater than the 11% it had expected.
'We have to negotiate and get into details,' she said. 'We can't let it get to where we miss our GDP target.'
Thai economic growth has lagged regional peers, growing at 2.5% last year, held back by soaring household debt. It is hoping for 3% growth this year.
Commerce Minister Pichai Naripthaphan said his government was prepared for negotiations and had high hopes they would go well, citing Thailand's good relations with the US.
Malaysia, which was dealt a rate of 24%, announced it would not seek retaliatory tariffs and it said the trade ministry would be actively engaging with US authorities 'to seek solutions that will uphold the spirit of free and fair trade.'
Cambodia is facing tariffs of 49% that will hurt its garment and footwear industries and crush hopes that it could attract investment by relocating from other countries in the region.
It is a 'very, very serious situation for the economy,' said a Cambodia-based investment consultant who declined to be identified.
There is 'nothing that Cambodia can offer as a negotiating tool, and will be at the back of a very long queue,' he added.
President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, US, April 2, 2025
The first of eight pages of reciprocal tariffs that the White House announced during Wednesday's event in the Rose Garden
The president's launch event was titled 'Make America Wealthy Again'
Trump said so-called 'Liberation Day' would be remembered as 'the day American industry was reborn', claiming there had been too much 'plunder' by other countries
A drone view shows containers at the terminals at the port in Kwai Chung in Hong Kong, China, April 3, 2025
In his 'Liberation Day' speech last night, the US President vowed to stop America from being 'pillaged', 'raped' and 'brutalised' as he unveiled reciprocal tariffs on all foreign nations, calling it America's 'Declaration of Economic Independence'.
He also launched his MAWA movement - a play on MAGA - to 'Make America Wealthy Again'.
The tariffs, which will come into effect between April 5 and 9, make Trump America's most protectionist US president since Herbert Hoover 90 years ago.
The fallout from his announcement was immediate.
Tokyo's Nikkei led an Asian sell-off, collapsing more than four per cent, while US futures plunged.
Hong Kong, Sydney, Seoul, Manila and Bangkok gave up more than one per cent. There were also losses in Shanghai, Singapore, Wellington and Mumbai.
The dollar also slid globally against most currencies including the pound and the euro, making imports more expensive but also making US exports more attractive to consumers.
Stephen Innes of SPI Asset Management said: 'President Trump walked into the Rose Garden and detonated the most aggressive trade shock the market's seen in decades. This isn't a jab - it's a full-on haymaker.'
Holding up a chart with a list of tariffs being implemented from Saturday, Trump said the EU will face a rate of 20%.
China will be battered with 34% and Japan 24%. Cambodia and Vietnam are both nearing 50%, while no other G7 nation has 10%.
In an omission that immediately raised eyebrows, Russia was not on the roster at all.
Trump said so-called 'Liberation Day' would be remembered as 'the day American industry was reborn', claiming there had been too much 'plunder' by other countries.
Watched by his Cabinet and blue-collar workers in the White House Rose Garden, he said he wanted to raise 'trillions and trillions of dollars' and start a new 'golden age'.
Trump said most countries will be charged 'about half' of their own tariffs.
