US-China trade war escalates as Pentagon declares military readiness

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Vijaya Laxmi Tripura
  • Update Time : Friday, March 7, 2025
United States, China, Chinese President Xi Jinping, US Defense Secretary Pete Hegseth, Chinese Embassy, President Donald Trump, European nations,  Beijing

The geopolitical rivalry between the United States and China has taken another dangerous turn, as Washington announced its preparedness for war with Beijing amid escalating trade tensions. The latest development follows a series of tariff increases imposed by both nations, reigniting fears of a full-scale economic confrontation with potential military implications.

On March 5, US Defense Secretary Pete Hegseth, in an interview with Fox News, made it clear that the United States is ready for war if necessary. His statement was a response to remarks from the Chinese Embassy in Washington, which declared Beijing’s readiness to fight “any” type of war.

Hegseth underscored the importance of military readiness, citing the need to deter conflict while maintaining strategic superiority.

“We are prepared,” he stated. “Those who long for peace must prepare for war.”

The Pentagon chief pointed to the modernization of China’s military and its expanding global influence as reasons for Washington’s heightened vigilance. According to him, China’s growing defense budget and technological advancements indicate its ambition to challenge the US-led world order.

“If we want to deter war with the Chinese or others, we have to be strong,” Hegseth added, emphasizing the US commitment to bolstering its military might.

Despite the stark warning, Hegseth noted that President Donald Trump maintains a “great relationship” with Chinese President Xi Jinping and that diplomatic efforts would continue where possible. However, he reiterated that his role as defense secretary is to ensure American military preparedness for any potential confrontation.

China, which has repeatedly condemned Washington’s aggressive economic policies, wasted no time in responding to the latest US trade measures. The Chinese Foreign Ministry spokesperson Lin Jian made Beijing’s stance clear, declaring that China would fight “till the end” if the US insisted on economic or military confrontation.

Late on March 4, Beijing announced countermeasures in response to Trump’s decision to double tariffs on Chinese imports from 10% to 20%. China imposed 10%-15% tariff hikes on a range of US agricultural and food products while placing 25 American companies under investment and export restrictions, citing national security concerns. Furthermore, Beijing filed a lawsuit with the World Trade Organization (WTO), arguing that Washington’s tariffs violate international trade rules. The Chinese government has also called for dialogue, urging the US to seek a diplomatic resolution rather than escalate tensions further.

The latest tariff escalation signals a revival of the trade war that began during Trump’s first term in office. In 2018 and 2019, the Trump administration imposed tariffs of up to 25% on approximately $370 billion worth of Chinese imports, citing unfair trade practices and intellectual property theft. In response, China retaliated with its own tariffs on American goods, leading to a prolonged economic conflict that disrupted global markets and supply chains.

Trump’s tariffs, initially intended to pressure China into trade concessions, had far-reaching consequences, affecting US farmers, manufacturers, and consumers. Despite a partial agreement in early 2020, tensions never fully subsided. Now, with Trump’s decision to double tariffs once again, Beijing views the move as a deliberate provocation that could further destabilize economic relations.

The implications of a renewed trade war extend far beyond the US and China. Given their roles as the world’s two largest economies, any prolonged economic conflict between them could disrupt global supply chains, drive up inflation, and create uncertainty in international markets.

The latest escalation could also have profound effects on global trade alliances. Countries that rely on trade with both the US and China, such as European nations, Japan, and South Korea, may be forced to navigate the increasing economic polarization. Developing economies, many of which depend on Chinese investment and American trade, could find themselves caught in the crossfire of this escalating dispute.

While the trade war remains the central battleground, the rhetoric from both sides suggests the conflict could spill over into the military domain. Washington’s declaration of military readiness indicates a willingness to confront China beyond just economic measures. Given the growing tensions in the South China Sea and Taiwan Strait, military posturing between the two nations is a genuine concern.

China has been expanding its military footprint, increasing its naval presence in disputed territories, and enhancing its missile capabilities. The US, in turn, has deepened its military partnerships in the Indo-Pacific region, conducting joint military exercises with allies such as Japan, Australia, and the Philippines.

Should tensions continue to escalate, miscalculations could lead to direct confrontations in strategic hotspots like the South China Sea, where both nations have competing claims and military deployments. Any skirmish between US and Chinese forces could set off a broader conflict, with catastrophic consequences for global security.

Despite the heated rhetoric, diplomatic engagement remains a potential pathway to de-escalation. China’s decision to file a complaint with the WTO suggests that Beijing still seeks legal and diplomatic solutions before resorting to more drastic measures. Likewise, the US has historically used backchannel negotiations to prevent economic disputes from spiraling out of control.

The question remains whether Washington and Beijing can find a way to resolve their differences without further destabilizing the global economy. With Trump gearing up for a re-election campaign, his hardline stance on China may be politically motivated, aimed at appealing to voters who support protectionist trade policies. However, a prolonged trade war could hurt American businesses and consumers, making it a risky strategy.

The latest escalation between the US and China signals a dangerous shift in their already strained relationship. What began as a trade war is now being framed in military terms, with both nations declaring their readiness for confrontation. While diplomatic avenues remain open, the risk of miscalculation is high, and the consequences of a prolonged economic and military standoff could be severe.

As tensions mount, the global community watches closely, hoping that economic competition does not give way to outright conflict. The coming months will be critical in determining whether Washington and Beijing can find a path to de-escalation or if the world must brace for a new era of geopolitical instability.

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Avatar photo Vijaya Laxmi Tripura, a research-scholar, columnist and analyst is a Special Contributor to Blitz. She lives in Cape Town, South Africa.

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