In April 2025, the U.S.-China trade war escalated to a heated stage once again. The Trump administration threatened to raise tariffs on Chinese goods from 34% to 50%, while China retaliated with countermeasures. Meanwhile, U.S. Vice President Vance openly used the term 'Chinese peasants' to belittle China during an interview, triggering global outrage. This game not only exposed the arrogance and anxiety of America's political elite but also reflected profound changes in the global economic landscape.
Last night, the U.S. Treasury Secretary briefly released signals of negotiating to lower tariffs, coupled with President Trump's disclosure of smooth consultations with South Korea, which inspired a strong rebound in the U.S. stock market in the early session, with the Dow Jones index soaring over 1,400 points at one point. However, the good times did not last long, as the White House subsequently confirmed that starting April 9, an additional 84% tariff would be imposed on all imported goods from China (34% and a threatened additional 50%), which, combined with the existing tariffs, would push the total tariff rate on almost all Chinese exports to the U.S. to a staggering 104%.
This news sent shockwaves through the market. The rebound previously caused by negotiation expectations vanished instantly, and panic spread rapidly, leading to a significant drop in the stock market near the close. All four major U.S. stock indices fell, and the 'FANG' stocks all closed lower. While traditional financial markets experienced severe volatility, the cryptocurrency market also saw another downturn, with Bitcoin (BTC) dropping below $75,000, down 5.6% in nearly 24 hours. The market generally believes that such high tariffs are almost equivalent to trade barriers, and the U.S.-China trade war has escalated to an unprecedented level of intensity.
In the face of extreme pressure from the U.S., China has also shown a tough stance. The Chinese Ministry of Foreign Affairs emphasized: 'The Chinese do not start trouble, nor are they afraid of it. Pressure, threats, and extortion are not the right way to deal with the Chinese side. The Chinese side will take necessary measures to firmly protect its legitimate rights and interests. If the U.S. disregards the interests of both countries and the international community and insists on waging a tariff war and trade war, the Chinese side will accompany them to the end.' The hardline statements from both sides have led outsiders to feel pessimistic about the possibility of reaching an agreement in the short term, and it is unlikely that China will take the initiative to please Trump in such an atmosphere.
What makes it worse is that recently, U.S. Vice President Vance, in an interview, defended President Trump's policy of imposing tariffs on Chinese goods by claiming that the U.S. relies on 'borrowing money from Chinese peasants to buy things made by Chinese peasants,' which undermines America's prosperity, employment, and price stability. The use of the term 'peasant' carries a strong derogatory connotation in English, implying 'uncivilized lower-class farmers.' This statement has been criticized by American media as 'living in a 19th century colonial mindset in 2025.'
Vance's remarks sparked a huge uproar on global social media. Some American netizens pointed out the irony: the China that Vance disparagingly referred to as 'peasants' has the world's longest high-speed rail network (which could circle the Earth's equator one and a half times), accounts for 60% of the global 5G base stations, and has a leading new energy vehicle industry chain. Moreover, Chinese citizens enjoy more affordable healthcare, safer communities, and more advanced digital payment systems than those in the United States, while unemployed workers in the American Midwest's 'Rust Belt' resemble real 'peasants.'
Chinese netizens retorted: a once-humiliated lower-class youth labeled as 'peasants' who climbed to the peak of power has chosen to attack others with the same derogatory language. The 'Vances' still live in the last century, and their arrogance will only accelerate America's international isolation.
In response, the Chinese Ministry of Foreign Affairs expressed surprise and sorrow at such ignorant and impolite remarks. Behind this restrained statement lies China's confidence in its own strength— in 2024, China's total retail sales of consumer goods are expected to grow by 6.8%, and cross-border e-commerce imports and exports are projected to increase by 15.6%, demonstrating strong resilience in domestic demand.
When containers at Shenzhen Port face off against empty cargo ships at New York Port across the ocean, this game has long transcended the economic realm: it is a struggle between land power and sea power, as well as a challenge to unipolar hegemony by a multipolar order. As Sun Tzu said, 'To win without fighting is the greatest victory.' But history shows that when two giants choke each other, the real losers are always the workers on the assembly line, farmers in soybean fields, and consumers struggling in supermarkets.
In the coming days, the market's focus will be on the next steps of both China and the U.S., as well as whether other countries will be drawn into a broader trade dispute. Investors need to closely monitor relevant policy dynamics and geopolitical risks, as the market is likely to remain shrouded in a haze of high uncertainty in the short term.
Overall, Vance's remarks expose their deep anxiety about losing their own advantages and reflect the West's difficulty in accepting the fact that emerging powers are reshaping the rules through peaceful development. True strength is the ability to maintain rationality and respect in the face of a rising opponent. The world will not regress due to the prejudices of some individuals, and China will not stop moving forward because of a few crude remarks.
