Why China won’t back down on Trump’s tariffs

China Is Resisting Trump’s Tariffs—Because It Can

As former U.S. President Donald Trump re-escalates the U.S.-China trade war, Beijing is making one thing clear: it won’t be forced into submission. Despite renewed pressure and rhetoric from Washington, China is holding firm—not only because of political defiance, but also because its economic fundamentals and strategic options allow it to do so.

Even before Trump’s new round of tariffs, exports to the U.S. made up just 2% of China’s GDP. While not insignificant, it’s a figure that underscores the limited leverage the U.S. holds over China’s broader economic direction.

“China’s leaders have no interest in appearing weak in the face of what they call U.S. bullying,” said a Beijing-based economist familiar with China’s trade policy. “And the numbers show they don’t need to.”

Defiance, Even Amid Domestic Challenges

The Communist Party of China (CPC) would certainly prefer not to engage in a prolonged economic fight with Washington, especially given ongoing domestic struggles—a real estate crisis, local government debt, and persistent youth unemployment among them.

Yet President Xi Jinping’s administration is choosing to frame the trade war not as a burden but as a test of resilience. Messaging from state media and top officials continues to emphasize China’s self-sufficiency, manufacturing strength, and alternative global partnerships.

“We are Chinese. We are not afraid of provocations. We won’t back down,” said Foreign Ministry spokesperson Mao Ning, who posted vintage clips of Chairman Mao vowing resistance during the Korean War—an unmistakable sign that China is taking the renewed conflict seriously.

Building Trade Alliances Beyond the U.S.

China’s refusal to bend is also backed by a deliberate shift in global trade strategy. In the past week alone:

• Xi met with Spanish Prime Minister Pedro Sánchez, urging EU-China unity against U.S. “unilateral bullying.”

• China and the EU have entered talks on modifying tariffs on Chinese electric vehicles, considering minimum price mechanisms instead of blanket levies.

• Chinese officials held discussions with counterparts from South Africa, India, and Saudi Arabia, promoting expanded trade frameworks outside the Western sphere.

• Xi is preparing visits to Malaysia, Vietnam, and Cambodia, three countries impacted by Trump’s tariffs, where regional trade resilience is likely to top the agenda.

Beijing’s message is clear: if the U.S. closes one door, China will open others.

Tariffs Have Become More Symbol Than Strategy

Economists now suggest the trade war has entered a symbolic phase, with tit-for-tat tariffs no longer drastically altering trade flows. Many of the most significant commercial ties between China and the U.S. have already been severed or rerouted.

“Tariffs at this point are largely political theatre,” said a senior trade analyst. “Both countries have adjusted their supply chains. The damage has been done, and now it’s about signalling strength.”

That doesn’t mean the consequences aren’t real—U.S. exporters are also feeling the pinch, and many sectors reliant on Chinese components or materials are bracing for higher prices under Trump’s new tariff plan.

Beijing Plays the Long Game

While Trump has publicly stated that defeating China on trade would be “easy,” Beijing has proven otherwise. China is betting that its global partnerships, strategic patience, and nationalist messaging will serve it better than reactionary moves.

President Xi’s invocation of Chairman Mao-era rhetoric reflects this posture. It’s a warning that China views the standoff with the U.S. not just as an economic dispute, but as a matter of national dignity and strategic autonomy.

As U.S. tariffs climb and global supply chains shift again, China’s refusal to yield is a reminder that this trade war has outgrown its original economic logic. It now represents a global power struggle—one where Beijing believes time is on its side.

Stay with The Horizons Times for ongoing analysis of U.S.-China trade tensions, global supply chain shifts, and emerging economic alliances in Asia, Europe, and beyond.