China says U.S. is blackmailing it with trade threats

The Chinese Commerce Ministry on Thursday spoke out against U.S. trade restrictions, saying it would levy retaliatory tariffs if the United States made good on threats of a 25 percent tax on $34 billion in Chinese imports. “China will not bow in the face of threats and blackmail, nor will it be shaken in its resolve to defend global free trade,” said ministry spokesman Gao Feng at a news conference. “China will never fire the first shot. … However, if the United States adopts taxation measures, China will be forced to fight back to defend the core interests of the nation and the interests of the people.” The European Union is also weighing its response to U.S. tariffs. German Chancellor Angela Merkel said her country would be willing to back cuts on tariffs on imported U.S. cars as part of a reciprocal agreement to resolve the trade spat with Washington.