In a dramatic escalation of the ongoing trade war, China has announced a massive hike in tariffs on U.S. imports, increasing them from 34% to 84%, effective April 10. This retaliatory move comes in response to President Donald Trump’s latest tariff increase on Chinese goods, which now exceed 100%. The sharp rise in tariffs threatens to deepen the rift between the world’s two largest economies, further crippling global trade.
According to the Office of the Tariff Commission of the State Council, the 84% tariff on U.S. goods is part of China’s strategy to counter the Trump administration’s aggressive trade policies. The U.S. imposed new tariffs last week, warning countries like China not to retaliate. However, China swiftly responded with its own countermeasures, signaling its unwillingness to negotiate under the current conditions.
In response to China’s retaliation, Trump announced an additional 50% increase in tariffs, pushing the total to 125% on Chinese imports. U.S. Treasury Secretary Scott Bessent criticized China’s trade practices, calling them “the worst offenders in the international trading system” and warning that the escalation would ultimately hurt China.
The intensifying trade war is already having a global impact, with markets showing signs of distress. The S&P 500 index has entered bear market territory, reflecting investor concerns about slower economic growth, rising inflation, and shrinking corporate profits. Asian markets, including South Korea’s Kospi Index and stocks in Shanghai and Hong Kong, have also seen sharp declines.
As the tit-for-tat tariff battle continues, the future of U.S.-China trade relations remains uncertain, with both countries locked in a dangerous cycle of economic sanctions that could have long-lasting global repercussions.
