China’s finance ministry has made a major announcement regarding tariffs on US goods, escalating the ongoing trade war between the two countries. The ministry revealed that they will be imposing a staggering 84 per cent tariff on all US goods, a significant increase from the previously announced 34 per cent. These new charges are set to go into effect on Thursday, starting at 12:01 CST (04:00 BST) on 10th April.
This move by China comes as a retaliatory measure after US President Donald Trump imposed a 104 per cent tariff on Chinese goods. The tension between the two economic giants has been escalating rapidly, with both countries accusing each other of unfair trade practices.
Last Friday, China had initially announced a 34 per cent tariff on all goods imported from the US, along with export controls on rare earth minerals and other retaliatory measures in response to Trump’s tariffs. In response, Trump added a 50 per cent tariff on Chinese goods and terminated negotiations with China.
The US had previously imposed a 10 per cent tariff on Chinese goods, which President Trump criticized as being too low compared to China’s higher tariffs on US goods. Trump then announced a “reciprocal tariff” move, where the US would charge other countries roughly half the tariff that they charged the US. This led to an additional 34 per cent tariff on China, bringing their total tariff to 44 per cent.
Following Trump’s reciprocal tariff announcement, the White House declared a “national emergency” due to security concerns stemming from persistent trade deficits. As a result, a baseline 10 per cent tariff was imposed on all countries, bringing China’s total tariffs to 54 per cent. The latest move by Trump to impose an additional 50 per cent tariff solely on China has pushed Beijing’s total levy to an unprecedented 104 per cent.
Despite the escalating tensions, President Trump has indicated that he is open to negotiations with China, stating that China also wants to make a deal but is unsure of how to proceed. However, China’s decision to raise tariffs to 84 per cent reflects their determination to stand firm against Trump’s trade policies.
The ongoing trade war between the US and China has had significant repercussions on global markets, with stocks plummeting in response to the escalating tariffs. US Treasury Secretary Scott Bessent has criticized China’s reluctance to negotiate and warned that they are the worst offenders in the international trading system. The uncertainty surrounding the trade war has created volatility in the stock market, with futures for major US indexes showing a significant decline.
As the trade war between the two largest economies intensifies, the impact on global trade and economic stability remains uncertain. Both countries are facing mounting pressure to find a resolution to the conflict and prevent further disruptions to the global economy.
