In the midst of the escalating trade tensions between the United States and China, Beijing retaliated on Wednesday against Donald Trump’s 104 percent tariffs by imposing its own tariffs of 84 percent, an increase from the earlier 34 percent, on all American products.
The Chinese finance ministry announced that these new tariffs will take effect on American goods starting April 10, as reported by Reuters. Previously, Beijing had imposed a 34 percent retaliatory tariff on U.S. goods.
Additionally, China’s commerce ministry revealed that it has added 12 U.S. entities to its export control list and included 6 American entities in its “unreliable entity” list.
Following this announcement, U.S. stock index futures reportedly experienced a significant drop.
This decision came just a day after Trump initiated a 104 percent tariff on China, with the White House Press Secretary confirming that the additional tariff would be effective from Wednesday, April 09.
Trump’s action was a reaction to China’s response to his reciprocal tariffs, with the President stating on Tuesday that he was awaiting a reply from China before implementing duties exceeding 100 percent.
Last week, shortly after Trump unveiled his extensive tariffs, China declared its own additional 34 percent tariff on all U.S. goods starting April 10. Beijing also indicated it would regulate exports of medium and heavy rare earth elements, which are essential for high-tech products such as computer chips and electric vehicle batteries.
“The objective of the Chinese government’s export controls on relevant items is to better protect national security and interests, while fulfilling international commitments, including non-proliferation,” China’s commerce ministry stated.
Responding to the 34 percent duty, Trump remarked that China “cannot afford to do it.” He expressed on his Truth Social platform, “China played it wrong, they panicked – The one thing they cannot afford to do!”
China’s escalation of the tariff from 34 percent to 84 percent underscores its commitment to “fight to the end” against Trump’s tariffs. Beijing contended that trade between the two nations should remain balanced, especially with the 104 percent tax on its exports to the U.S. now in effect.
The government led by Xi Jinping has not confirmed whether it would engage in negotiations with the White House, unlike several other countries.
“If the U.S. persists in further escalating its economic and trade restrictions, China is firmly resolved and well-equipped to undertake necessary countermeasures and fight to the end,” the Chinese commerce ministry declared in its statement.
Chinese Premier Li Qiang also emphasized that the country has sufficient policy tools to “fully offset” any adverse impacts from the U.S. imposing the 104 percent tariffs on all Chinese imports.
Qiang reiterated his confidence in the growth prospects of the world’s second-largest economy by 2025.
