China has sharply escalated its trade war with the United States, announcing retaliatory tariffs of 84% on imports of US goods. The move comes in direct response to the latest round of tariffs imposed by the Trump administration on Chinese products.
The announcement signifies a 50 percentage point increase from China’s initial planned levy, effectively matching the additional tariffs that US President Donald Trump imposed on Chinese goods earlier on Wednesday.
Trump’s sweeping tariffs, which China has labeled “reciprocal,” have placed a levy of at least 104% on all Chinese goods entering the US.
“The US escalation of tariffs on China is a mistake upon mistake, severely infringing upon China’s legitimate rights and interests, and seriously damaging the multilateral trading system based on rules,” stated China’s State Council Tariff Commission in a press release announcing the new measures.
China had repeatedly warned that it would “fight to the end” if the US continued to escalate the trade war. The latest round of US tariffs saw Trump adding an additional 50% to levies already in place since his return to the White House, bringing the total to 20%.
Beyond tariffs, China’s Commerce Ministry has also imposed export controls on 12 American companies, restricting Chinese companies from supplying them with dual-use items. Six more US firms have been added to China’s “unreliable entity list,” effectively banning them from trading or making new investments in China.
Adding another layer to the escalating conflict, China has filed a complaint with the World Trade Organization (WTO) over the latest US tariffs.
The tit-for-tat actions highlight the increasingly fraught relationship between the world’s two largest economies.
The trade war has raised concerns about its potential impact on global economic growth, supply chains, and consumer prices.
While both sides have expressed a willingness to negotiate a resolution, the recent escalation suggests that a quick resolution is unlikely. The long-term consequences of this trade war remain uncertain.
