China has pledged to “fight to the end” after U.S. President Donald Trump signaled a sharp escalation in the ongoing trade standoff between the world’s two largest economies.

Beijing hit back strongly against Trump’s threat to impose an additional 50% tariff on Chinese goods starting Wednesday, calling the move “blackmail” and warning that it will not bow to pressure.

“If the U.S. insists on going its own way, China will fight to the end,” a spokesperson for China’s Commerce Ministry declared, labeling Washington’s approach “a mistake on top of a mistake.”

The latest U.S. threat follows China’s announcement of a 34% retaliatory tariff on American imports, set to take effect Friday. If both sides follow through, it could push overall U.S. tariffs on Chinese products to a staggering 104%.

Despite the growing tension, Asian markets showed mixed reactions. Japan’s Nikkei index rebounded 5.5% from a recent low following a phone call between President Trump and Japanese Prime Minister Shigeru Ishiba, during which both agreed to initiate new trade talks. Elsewhere in Asia, markets in Thailand, Indonesia, and Vietnam extended their losses amid the uncertainty.

Taiwan Signals Willingness for Trade Talks Amid Market Rout

Meanwhile, Taiwan’s government expressed readiness to begin negotiations with the United States after the island’s stock market suffered a historic 10% drop on Monday and slid another 4% overnight—marking its lowest point in 14 months.

Taiwan, a key player in the global semiconductor supply chain, was hit with a 32% U.S. tariff. President Lai Ching-te has since proposed a zero-tariff agreement with the U.S., alongside increased investment and reduced trade barriers.

Foreign Minister Lin Chia-lung said Taiwan is open to discussions “at any time” once a schedule and format are confirmed. Premier Cho Jung-tai echoed the sentiment, confirming that Taiwan is actively seeking dialogue and will present its proposal when the timing is right.

Despite lacking formal diplomatic ties, the U.S. remains Taiwan’s most critical international partner, and trade cooperation between the two has grown increasingly significant amid regional economic pressures.

UK Eyes Tariff Relief as Starmer Faces Scrutiny

Back in the UK, Prime Minister Sir Keir Starmer is set to be grilled by senior MPs over his government’s response to U.S. tariffs. The session comes ahead of Easter recess and is expected to cover broader geopolitical concerns, including the Ukraine war, Middle East tensions, and Trump’s decision to enter direct talks with Iran on nuclear issues.

Trump made it clear from the Oval Office on Monday that he has no intention of pausing tariffs to make space for negotiations, despite mounting global economic strain.

Britain, among several countries pushing for exemptions, has been hit with a 10% tariff on goods exported to the U.S., alongside a 25% tax on automobiles and additional duties on steel and aluminum products.

With no signs of retreat from either Washington or Beijing, the trade war’s global impact is beginning to reshape markets, alliances, and economic forecasts—setting the stage for what could become a defining geopolitical conflict of the decade.