China has escalated its response to U.S. tariff policies under President Donald Trump, announcing a significant increase in tariffs on U.S. imports.
Starting April 10, levies on U.S. goods entering China will jump from 34% to a staggering 84%, according to a statement from the Office of the Tariff Commission of the State Council.
This move follows a sharp rise in U.S. tariffs on Chinese goods, which now exceed 100%, a change that took effect at midnight. The tit-for-tat tariff escalation is intensifying tensions between the world’s two largest economies and threatens to severely disrupt global trade.
In 2024, the U.S. exported $143.5 billion worth of goods to China while importing $438.9 billion in products, according to the Office of the U.S. Trade Representative.
The ongoing trade conflict has already caused significant concern, with both countries imposing tariffs that could reduce economic activity across various sectors.
The Trump administration’s recent tariff policies, announced last week, warned other nations against retaliating.
While some countries, like Japan, have shown openness to negotiation, China has taken a firmer stance, immediately countering with new tariffs.
In response to China’s initial tariff increase on April 2, President Trump announced an additional 50% increase, bringing U.S. import taxes on Chinese goods to 104%.
U.S. Treasury Secretary Scott Bessent criticized China’s refusal to negotiate, calling them “the worst offenders in the international trading system” in an interview with Fox Business.
He further stated, “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”
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The U.S. had already begun imposing new tariffs on China earlier in the year as part of its broader trade policy.
These measures, which also affected Canada and Mexico, were framed as part of an effort to combat the flow of fentanyl into the U.S. during Trump’s second term.
The intensifying trade war has rattled global markets, raising concerns about slower economic growth, rising inflation, and shrinking corporate profits.
The S&P 500 saw a sharp decline in April, falling nearly 20% from its peak, officially entering bear market territory.
Meanwhile, South Korea’s Kospi Index also entered a bear market on Wednesday, and stock markets in Shanghai and Hong Kong have faced substantial losses since the announcement of U.S. tariff hikes on April 2.
