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

China has retaliated against President Donald Trump’s new tariffs, announcing on Wednesday (April 9) that it will raise tariffs on U.S. goods to 84%, signaling a deepening trade war between the world’s two largest economies.

According to a government statement released on Wednesday, the latest Chinese countermeasures will take effect on April 10. China’s move came just hours after Trump’s broad sanctions came into force, bringing the cumulative tariff rate announced this year to 104%.

China also announced it would file a complaint against the U.S. at the World Trade Organization (WTO), added six companies to its list of unreliable entities, and placed 12 American firms on its export control list.

U.S. stock futures fell around 1.7% following the announcement of China’s new tariffs on American products—a decision that followed Beijing’s pledge to “fight to the end.” European markets plunged more than 4%.

China called Trump’s decision to escalate tariffs this week “one mistake on top of another.” However, it kept the door open for dialogue with the U.S. Chinese exports, which were already subject to widespread tariffs imposed earlier this year, in addition to punitive duties from Trump’s first administration and the subsequent Biden administration.

Tensions between Washington and Beijing have escalated since Trump returned to the White House in January. More than two months after taking office, the U.S. president has yet to speak with his Chinese counterpart, Xi Jinping.

The two countries are also at an impasse over China’s alleged role in the flow of fentanyl into the U.S.—a key reason cited by Trump for two previous rounds of tariffs.

Fentanyl has become a flashpoint in U.S.-China relations, with Trump accusing Beijing of doing too little to prevent precursor chemicals from entering the U.S. China, in turn, has accused the Trump administration of using the issue as a pretext for more tariffs, with the Chinese Foreign Minister labeling the move “blackmail.”

The Trump administration has also accused China of imposing non-tariff barriers that hurt American exports and businesses—claims outlined in a recent annual report by the Office of the U.S. Trade Representative.

Source: Bloomberg Línea

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