Tariff showdown: Can China outlast US? Beijing thinks so

China is refusing to back down in its tariff standoff with the United States because Beijing believes it has the strength and strategy to endure what it sees as “economic bullying” from Washington.
Chinese leaders have repeatedly told the public that they are capable of absorbing the impact, President Xi Jinping told visiting Spanish Prime Minister Pedro Sánchez that China and the EU should jointly resist “unilateral bullying practices.”
“There are no winners in a trade war, and going against the world will only lead to self-isolation,” Xi said. He added, “For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others.”
China has imposed retaliatory tariffs of up to 125% on US goods and is actively expanding its trade partnerships with countries in Asia, Africa, and Europe. Xi is set to visit Malaysia, Vietnam and Cambodia—nations also affected by US tariffs—while his ministers continue outreach efforts to South Africa, Saudi Arabia and India. Simultaneously, China and the EU are reportedly negotiating a potential replacement of tariffs on Chinese cars with minimum pricing to address concerns of dumping.
Chinese commerce minister Wang Wentao held a video call with EU Trade Commissioner Maroš Šefcovic on Tuesday to discuss US “reciprocal tariffs.” Wang said the tariffs “seriously infringe upon the legitimate interests of all countries” and warned that “if the US insists on its own way, China will fight to the end.”
“It is a typical act of unilateralism, protectionism and economic bullying,” Wang said.
Symbolically, Chinese state media and officials have turned to history to inspire national pride and resilience. Chinese foreign ministry spokesperson Mao Ning sharing clips of Mao Zedong’s Korean War speeches, declaring China would “never yield.” On X , the spokesperson also invoked Mao’s “paper tiger” remark, suggesting that while the US projects strength, it is vulnerable to being pierced by firm resistance.

Despite the tariff war between two of the world’s largest economies, trade between the US and China remains substantial. In 2024, total US goods trade with China reached $582.4 billion. Exports to China fell by 2.9% to $143.5 billion, while imports rose 2.8% to $438.9 billion. As a result, the US goods trade deficit with China widened to $295.4 billion—a 5.8% increase from the previous year.
Even though Beijing has denounced the tariffs its impact is real. In Zhengzhou, home to major Apple supplier Foxconn, workers expressed concerns about reduced shifts and pressure on production.
The Washington Post described the fallout as a “historic rupture” in global commerce. US tariffs on Chinese goods now exceed 145%, pushing companies to halt shipments or reroute supply chains. Footwear maker Highline United, for instance, returned a container of shoes to China rather than pay a $60,000 tariff—ten times what it typically paid. “It’s going to be catastrophic,” said the firm’s COO, Kim Bradley. She echoed concerns that many US importers can’t quickly replace Chinese suppliers and must now bear the brunt of increased costs, often without support.