China-US trade war intensifies with new port tariffs

China said Tuesday it will "fight to the end" in its trade war with the United States , after President Donald Trump announced an additional 100% tariff against the world's second-largest economy. The statement comes on the same day that new tariffs imposed by both countries on ships go into effect, intensifying the naval and fiscal battle between Washington and Beijing.

Concerns about the escalation of the trade war between the world's two largest economies have grown in recent days. On Thursday the 9th, China announced the implementation of new export controls on rare earth technology. In retaliation, the following day, Trump declared that the United States would apply additional 100% tariffs on Chinese goods starting November 1st—or earlier. The American president also announced export controls on "all software considered critical," starting on the same date.

The news shook markets and cast doubt on a possible meeting between Trump and Chinese President Xi Jinping in South Korea.

"Regarding tariff and trade wars, China's position remains the same," a Chinese Ministry of Commerce spokesperson said Thursday. "If you want to fight, we will fight to the end. If you want to negotiate, our doors remain open," he added.

The spokesperson reiterated that "export control measures regarding rare earths and related articles constitute legitimate actions by the Chinese government to improve its control system, in accordance with regulations and laws."

“As a responsible great power, China has consistently and resolutely protected its own national security and international collective security,” he added.

New taxes on ships

China and the United States have decided to mutually impose port surcharges on shipping companies delivering products ranging from toys to crude oil, raising uncertainty about the two superpowers' ability to reach a lasting agreement.

Starting this Tuesday, October 14, Chinese ships will have to pay a high fee to dock at American ports . Announced in April, this measure aims, according to Washington, to revive US shipyards.

In practice, ships manufactured in China or another country but owned or operated by a Chinese entity will have to pay specific taxes. Western shipowners will also be affected, as they own a significant fleet of Chinese-built vessels.

For the United States, the goal is to combat Chinese dominance in commercial shipbuilding and revive the American shipbuilding industry. U.S. shipyards account for only 0.1% of global shipbuilding.

An investigation conducted during former President Joe Biden's administration concluded that China used unfair policies and practices to dominate the shipping, maritime logistics, and shipbuilding sectors. These practices paved the way for US sanctions.

Chinese retaliation

An eye for an eye, a tooth for a tooth. The Chinese tariffs were detailed on Friday the 10th . Starting today, Beijing will begin taxing American ships and shipowners that dock at Chinese ports. China has already begun collecting the new port fees on ships owned, operated, or built in the United States, or sailing under the American flag. According to information released by state broadcaster CCTV , an exemption is in effect for ships built in China.

The effects of these measures will be more damaging to China than to the United States, which builds very few commercial ships. But one thing is certain: this new escalation will further complicate global trade, already affected by the tariffs imposed by Donald Trump.

Stock markets falling

Major European stock markets opened lower on Tuesday, affected by rising trade tensions between China and the United States.

In Paris, the CAC 40 index fell 0.82%. In London, the FTSE 100 fell 0.40%, and in Frankfurt, the DAX lost 0.94%.

(with agencies)