China Strikes Back With 84% Tariffs on U.S. Goods as Trade War Escalates

In Brief:

Beijing raises tariffs on American imports to 84% following Trump’s new 104% tariffs on Chinese goods.

Global markets slump amid fears of prolonged economic conflict between the world’s largest economies.

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China has responded forcefully to the Trump administration’s latest wave of protectionist trade policies, announcing a sweeping 84% tariff on U.S. goods starting April 10. The move marks the sharpest escalation yet in a rapidly intensifying trade war between the two global superpowers.

According to an official release from the Office of the Tariff Commission of the State Council, China’s new tariffs will apply to a wide range of U.S. imports, up from the previous 34%. The response follows Trump’s April 2 announcement of an unprecedented 104% tariff on Chinese exports to the U.S., part of his “reciprocal tariff” framework rolled out in his second term.

“The Chinese actually don’t want to come and negotiate,” U.S. Treasury Secretary Scott Bessent told Fox Business. “They are the worst offenders in the international trading system… this escalation is a loser for them.”

Global Markets Rattle

Investors reacted swiftly. The S&P 500 fell nearly 20% from its peak, entering bear market territory, while the Nasdaq and Dow saw steep drops as well. Asian markets mirrored the panic: South Korea’s Kospi plunged into a bear market, and indices in Shanghai and Hong Kong have continued to slide since the initial U.S. tariff rollout.

The U.S. exported $143.5 billion in goods to China in 2024 while importing $438.9 billion, making the impact of a trade freeze substantial. Economists now fear a prolonged slowdown, with higher inflation, tighter corporate margins, and reduced consumer spending likely to ripple across global markets.

As of now, Beijing shows no sign of backing down. While Japan and other nations have signaled openness to negotiate, China’s move signals a hardline stance, potentially setting the stage for a protracted economic standoff.

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