In a bold escalation of the ongoing trade dispute between the world’s two largest economies, China announced on Wednesday, April 9, that it will increase tariffs on all goods imported from the United States to 84 per cent, up from the previously stated 34 per cent.
The new tariff rate, set to take effect on April 10, marks a sharp retaliation to Washington’s recent imposition of steep duties on Chinese exports.
Last week, Beijing signalled its initial response with a 34 per cent tariff on US-origin products, reacting to fresh trade restrictions from the US.
However, following the implementation of a 104 per cent tariff on Chinese imports by the US—effective Wednesday under former President Donald Trump’s policies—China has significantly ratcheted up its countermeasures. This tit-for-tat escalation signals deepening economic tension that could disrupt global trade and supply chains.
The US tariffs, which include a baseline 10 per cent increase rolled out over the weekend and additional levies from February and March, now total a staggering 104 per cent on Chinese goods.
Trump, who returned to the presidency, had initially proposed a 34 per cent tariff hike, but after China responded with its own 34 per cent duty on American products, he vowed to add another 50 percent, bringing the total to its current level.
On Tuesday, Trump claimed that the US was “taking in almost $2 billion a day” from these tariffs, defending his strategy as a means to revive America’s manufacturing sector by forcing companies to relocate domestically.
However, the global economic fallout has been immediate and severe. Since Trump’s baseline tariffs took effect, markets worldwide have experienced dramatic sell-offs, fueling fears of a potential recession. Starting Wednesday, import tariffs from dozens of economies, including major players like India, Brazil, and the European Union, are also rising, compounding the uncertainty.
In China, senior officials, including President Xi Jinping’s top economic advisor, condemned the US moves as “unilateralism, protectionism, and economic coercion.” The advisor emphasized that China’s retaliatory measures are not only to protect its own interests but also to uphold international trade rules.
“Our firm response demonstrates our commitment to defending fairness in global commerce,” he stated, warning that Beijing would fight “to the end” against what it perceives as American aggression.
Trump, meanwhile, remains undeterred, arguing that higher tariffs will pressure companies to shift production back to the US.
During a speech on April 8 at a fundraising gala for House Republicans, he outlined plans to impose major tariffs on the pharmaceutical sector, claiming it would incentivize firms to leave China and other countries. “We’re a very big market, and when they hear about these tariffs, they’ll open plants here,” he said.