China’s state media has issued a stark warning to U.S. President-elect Donald Trump, cautioning that his pledge to impose additional tariffs on Chinese goods could trigger a destructive trade war between the world’s two largest economies. Trump, who is set to take office on January 20, announced plans to levy an "additional 10% tariff" on Chinese imports unless Beijing intensifies its efforts to curb the trafficking of chemical precursors used in producing fentanyl, a deadly drug contributing to the U.S. opioid crisis.

Editorials in prominent Chinese media outlets, including China Daily  and the Global Times, rebuked Trump’s stance, urging him not to scapegoat China for America’s drug problems. “There are no winners in tariff wars,” China Daily wrote. “If the U.S. continues to politicize economic and trade issues by weaponizing tariffs, it will leave no party unscathed.” The editorials also warned against underestimating Beijing’s resolve, with the Global Times emphasizing that China's goodwill in anti-drug cooperation should not be taken for granted.

Economists are already downgrading growth forecasts for China’s $19 trillion economy in 2025 and 2026 in light of Trump’s tariff threats. These additional tariffs, potentially ranging from 15% to 60%, could exacerbate inflation and further disrupt global supply chains, as was seen during Trump’s first term.

China’s industrial sector, heavily reliant on U.S. trade, is showing signs of strain. Official data revealed a 10% year-on-year decline in profits for Chinese firms in October, underscoring vulnerabilities in an economy less equipped to withstand trade shocks than during Trump’s earlier presidency.

Trump’s proposed tariffs exceed the 7.5%-25% range imposed during his first term, which had already reshaped global trade dynamics and increased consumer costs. “Using counternarcotics issues to increase tariffs on Chinese goods is untenable and unpersuasive,” remarked Gao Lingyun, an analyst at the Chinese Academy of Social Sciences.

The president-elect’s selection of trade lawyer Jamieson Greer as the next U.S. Trade Representative signals a return to the hardline policies of his first term. Greer, a key figure in the initial U.S.-China trade war, is expected to play a central role in advancing Trump’s aggressive tariff agenda, which includes plans to impose 25% tariffs on goods from Canada and Mexico for insufficient efforts to curb drugs and migration.

In Beijing, Chinese President Xi Jinping reassured former Singaporean Prime Minister Lee Hsien Loong that China’s economy remains resilient and committed to long-term growth. Xi’s remarks, as reported by Xinhua, reflected confidence in China’s ability to weather external pressures. Lee echoed this sentiment, emphasizing the determination of the Chinese people to ensure their nation’s success.

Trump’s revived tariff rhetoric is rattling industries and policymakers worldwide. The possibility of tariffs exceeding 60% on Chinese goods poses a severe challenge to trade negotiators and raises questions about the future of global economic stability. Analysts warn that the fallout from renewed trade tensions could ripple across multiple economies, forcing governments to recalibrate their growth strategies.

As the world braces for another round of economic turbulence, the stakes are high for both Washington and Beijing. Whether a path to mutual understanding can be forged remains uncertain, but the specter of “Trade War 2.0” looms large.