In a sharp escalation of the ongoing trade tensions between the United States and China, Beijing announced on Wednesday that it will impose an 84% retaliatory tariff on American goods starting April 10. This move comes just a day after former US President Donald Trump hit China with a staggering 104% tariff on all imports. The Chinese finance ministry stated that the increased levy is aimed at countering what it described as aggressive and unjust trade restrictions from Washington. In addition to the tariffs, China has added 12 American entities to its export control list and placed six more on its “unreliable entity” list, further intensifying the economic standoff between the two global powers.
Trump’s aggressive tariff hike was announced with the intention of pressuring Beijing to yield in the long-standing trade dispute. However, China responded by asserting its readiness to “fight to the end,” making it clear that it has the economic tools and political resolve to counter US measures. According to China’s commerce ministry, these countermeasures are essential to safeguard national interests and security, especially in sectors like rare earth exports critical for high-tech industries. The Xi Jinping administration, while refraining from confirming any immediate plans for negotiations, emphasized its intention to balance trade and defend the country’s economic sovereignty.
The fallout from this tariff exchange has already begun to ripple through global markets. US stock futures dipped sharply following China’s announcement, signaling investor concerns over prolonged economic friction between the two largest economies in the world. Premier Li Qiang reassured Chinese citizens and investors by stating that China possesses ample policy tools to offset any economic shock resulting from Trump’s tariffs. Despite Trump’s claims that “China cannot afford this,” Beijing’s swift and forceful retaliation underscores its unwillingness to be pressured. With both sides digging in, the trade war appears poised to deepen, threatening to disrupt global supply chains and further strain diplomatic ties.
