In a swift countermeasure to Washington’s latest tariff hike, China has announced an 84% levy on U.S. goods, a sharp increase from the previous 34%. The tariffs, set to take effect on April 10, were disclosed in a translated statement from the Office of the Tariff Commission of the State Council. The move follows the United States’ decision to raise import duties on Chinese goods to more than 100% at the stroke of midnight.
The tit-for-tat tariff standoff continues to rattle the global economic landscape, with trade between the two economic superpowers hanging in the balance. U.S. exports to China totaled $143.5 billion in 2024, while imports from China reached $438.9 billion, according to figures from the Office of the U.S. Trade Representative. The growing tariff rift now threatens to choke off this vital trade flow.
President Trump’s administration had issued a stern warning to trading partners last week, cautioning against retaliation as it rolled out a sweeping new tariff framework. Despite these warnings, China responded decisively. Following the U.S. rollout on April 2, Trump upped the pressure with an additional 50% hike, pushing total import taxes on Chinese products to 104%.
Speaking to Fox Business, U.S. Treasury Secretary Scott Bessent criticized China’s stance, saying the country “doesn’t want to come and negotiate” and branding the escalation as “a loser” for Beijing. He further accused China of running “the most imbalanced economy in the history of the modern world.” The new tariffs mark the latest chapter in a broader crackdown that has also targeted imports from Canada and Mexico, under the banner of combating fentanyl trafficking.
The ripple effects of the trade war are being felt across financial markets. Wall Street’s S&P 500 slid into bear market territory on Tuesday, down nearly 20% from its previous high. Asia wasn’t spared, with South Korea’s Kospi Index also entering a bear market on Wednesday, while markets in Shanghai and Hong Kong suffered steep losses in the wake of the April 2 announcement.
