China hits back on tariff: In a dramatic escalation of trade tensions, China has hit back by imposing a sweeping 84% levy on all American goods.
The move comes in direct response to former U.S. President Donald Trump’s shocking 104% tariff on Chinese imports announced earlier this week.
This latest development, confirmed by China’s finance ministry on Wednesday, signals a renewed trade war that could have lasting consequences for the global economy.
Tensions Reach Boiling Point
Beijing’s response, set to take effect from April 10, replaces the earlier 34% tariff imposed last week. The Chinese government has emphasized that the move is necessary to protect its national economic interests.
“The U.S. actions have forced China to defend its sovereign trade rights. If the U.S. continues on this path, China will fight to the end,” said a spokesperson from China’s Commerce Ministry.
Trump’s 104% Tariff Sparks Fury in Beijing
The backdrop to this aggressive response is Trump’s surprise decision to enforce a 104% tariff on all Chinese goods beginning April 9. Labeling the measure as “long overdue,” Trump claimed it was meant to correct what he described as “decades of unfair trade” with China.
“China cannot afford to do it,” Trump said on his Truth Social account, adding, “They played it wrong. They panicked.”
The dramatic announcement caught markets off guard, triggering a sell-off in U.S. stock futures and raising alarms across global financial hubs.
China Hits Back on Tariff With Export Controls and Blacklists
In addition to the tariff hike, China hits back on tariff strategy by tightening its grip on exports. The government confirmed restrictions on medium and heavy rare earth elements—vital to high-tech sectors such as electric vehicles, semiconductors, and defense.
China also expanded its export control list by adding 12 American entities and placed 6 others on its “unreliable entity” list, severely limiting their ability to operate in or with China.
A ministry statement said, “This is a necessary legal step to safeguard national security and fulfill our international obligations.”
U.S. Response: Treasury Labels Move ‘Unfortunate’
Washington responded quickly to China’s 84% tariff announcement. Treasury Secretary Scott Bessent described it as “an unfortunate decision that escalates tension unnecessarily.”
Bessent urged Beijing to resume trade talks, saying, “We call on China to come to the table and seek a balanced solution instead of retaliating.”
So far, however, there is little sign that either side is ready to de-escalate.
China Hits Back on Tariff While Signaling Economic Confidence
Chinese Premier Li Qiang sought to reassure global markets, stating that China has “ample tools” to shield its economy from external shocks. Speaking to local media, Qiang said that despite Trump’s tariffs, China’s economy remains strong and is expected to grow steadily into 2025.
“External turbulence will not shake our long-term economic goals,” he declared. “We are prepared and will not allow foreign pressure to dictate our development.”
Escalation Raises Fears of Global Economic Fallout
Trade analysts are warning that the escalating tariff war could ripple across global markets, especially given the scale and integration of both economies.
“An 84% tariff by China and a 104% tariff by the U.S. is not just symbolic—it affects nearly every industry tied to the global supply chain,” said Dr. Elaine Zhou, a trade economist at the Asia-Pacific Institute.
She warned of increased consumer prices, reduced industrial output, and prolonged uncertainty in international markets if tensions aren’t resolved soon.
But Will It Last?
Although China has shown no intention of backing down, experts believe Beijing is leaving a narrow window open for negotiations. However, with Trump doubling down and hinting at further economic measures, a diplomatic solution may be elusive.
China’s Commerce Ministry has yet to confirm whether talks with the White House are planned but reiterated its readiness to “take necessary countermeasures.”
