China has announced retaliatory tariffs of 84% on all U.S. goods, effective April 10. The move comes in direct response to President Donald Trump’s latest tariff hike, which raised U.S. levies on Chinese imports to over 100% as of Tuesday morning, threatening to paralyze trade between the world’s two largest economies.
China Imposes 84% Retaliatory Tariffs on U.S. Goods
China’s Office of the Tariff Commission of the State Council confirmed the steep increase from its previous 34% retaliatory tariffs, signaling a sharp shift in Beijing’s strategy. This follows Trump’s sweeping tariff policy unveiled last week, which he warned trading partners not to counter. The new 84% rate marks a significant escalation, pushing tensions to a boiling point and raising fears of a full-blown global trade crisis.
“The U.S. actions have forced us to respond decisively to protect our economic interests,” a spokesperson for China’s Finance Ministry said in a statement. “We urge the United States to reverse its unilateral measures and return to negotiations.” The ministry criticized Trump’s tariffs as a violation of international trade rules, accusing the U.S. of “bullying” tactics that endanger global supply chains.
U.S. stock futures plummeting
The announcement sent shockwaves through financial markets, with U.S. stock futures plummeting. Dow Jones Industrial Average contracts fell over 1,000 points in pre-market trading, while the S&P 500 and Nasdaq 100 saw declines of 2.5% and 3%, respectively. The ripple effect hit European markets as well, with the Stoxx 600 index dropping 4.8% by midday.
Trump, undeterred, took to Truth Social to defend his policy, claiming China’s retaliation proves his strategy is working. “China’s markets are crashing because Cavalierly they’re imposing 84% tariffs on us, but we’re bringing in BILLIONS a week from them and others,” he posted. “This is an ECONOMIC REVOLUTION. Hang tough—America will WIN!”
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Analysts warn that the tit-for-tat escalation could grind U.S.-China trade—valued at $582.4 billion in 2024—to a near standstill. American consumers may face soaring prices for goods like electronics, clothing, and machinery, while U.S. exporters, particularly in agriculture, brace for massive losses. China, already grappling with a property crisis and weak domestic demand, is expected to lean on stimulus measures and deepen ties with alternative trade partners.
The White House has yet to formally respond, but Trump has hinted at further action, threatening an additional 50% tariff on Chinese goods if Beijing doesn’t back down. As the deadline looms, the stakes couldn’t be higher for both nations—and the global economy.
Stay tuned for updates as this story develops.
