China hikes tariffs on US goods to 84% as President Trump’s new trade war sparks global economic uncertainty and threats of further escalation.
Quick Takes
- The Trump administration imposed a staggering 104% tariff on Chinese goods, combining a new 50% tariff with existing 34% reciprocal duties
- China swiftly retaliated by raising its tariffs on US goods to 84% and filing a complaint with the World Trade Organization
- Beijing has vowed to “fight to the end” in the trade war and is considering additional countermeasures targeting US agriculture, poultry, Hollywood films, and fentanyl cooperation
- Global markets have responded negatively, with significant drops in European indexes and fears of a worldwide trade war
- Other US trading partners including the EU and Canada are implementing their own retaliatory measures against American tariffs
Trade War Escalates with Dueling Tariffs
The economic standoff between the United States and China has intensified dramatically with both nations implementing substantial new tariffs. President Trump’s administration has moved forward with a 50% tariff on Chinese imports, which combines with existing 34% reciprocal duties to create a massive 104% total tariff rate on goods from China. This tariff increase follows a 10% blanket tariff on all goods entering the US that took effect on April 5, further raising costs for American businesses and consumers purchasing Chinese products.
Beijing wasted no time responding with its own economic countermeasures, announcing an 84% tariff on US goods entering China. The Chinese government has also filed a formal complaint with the World Trade Organization against the United States, signaling its intent to challenge the legality of America’s tariff policies through international channels. Chinese officials have taken a hard-line stance, with state media reporting that China will “fight to the end” in this escalating trade conflict that threatens to disrupt global supply chains and increase prices worldwide.
104% tariffs on China are not enough. I'm advocating 400%. I do business with China. They don't play by the rules. They've been in the WTO for decades. They have never abided by any of the rules they agreed to when they came in for decades. They cheat, they steal, they steal IP.… pic.twitter.com/iotEgmNQrr
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) April 9, 2025
China Contemplates Additional Retaliatory Measures
Beyond the immediate tariff increases, China appears to be developing a more comprehensive strategy to counter American economic pressure. Potential retaliatory measures that Beijing might implement include increased tariffs specifically targeting US agricultural exports like soybeans and wheat. Such measures would directly impact American farmers, a key constituency for President Trump, potentially creating domestic political pressure against the administration’s trade policies.
Chinese commentators have suggested Beijing might implement bans on US poultry imports and restrict Hollywood’s access to China’s lucrative film market. Perhaps most concerning for US security interests, China could suspend cooperation on fentanyl enforcement – a key issue cited by the Trump administration as partial justification for the new tariffs. Additional measures being considered include imposing restrictions on American companies operating in China, potentially creating significant challenges for US businesses that depend on the Chinese market.
Global Ripple Effects and Uncertain Path Forward
The US-China trade conflict is creating worldwide economic uncertainty, with global markets responding negatively to the escalating tensions. European indexes have experienced significant drops, and various countries are implementing their own countermeasures against US tariffs. The European Union has approved its first retaliatory tariffs against the United States, ranging from 15% to 25% on various American goods, with implementation scheduled for next Tuesday. EU trade ministers have also discussed a €25.7 billion tariff package on US products.
President Trump has claimed that China and other countries are eager to negotiate, stating that talks have already begun with Japan and South Korea. However, according to reporting from Politico, “many foreign governments who want to talk are still waiting by the phone.” There remains significant uncertainty about Trump’s specific goals in these negotiations, with many nations expressing frustration about the lack of clear communication channels.
