In a dramatic escalation of the ongoing trade war between the world’s two largest economies, China announced today it will impose an 84% tariff on all U.S. goods, starting Thursday, April 10. The move follows U.S. President Donald Trump’s decision on April 8 to raise tariffs on Chinese imports from 34% to 84%, culminating in a combined total levy of 104% on some items.
Beijing’s response marks a 50% increase from its previous 34% tariffs, in what Chinese officials are calling a “reciprocal and necessary reaction” to what they describe as Washington’s “unilateral bullying.
Beijing Fires Back at Trump’s ‘Reciprocal Tariff’ Strategy
China’s Ministry of Finance accused the U.S. of violating international trade rules and attempting to sabotage fair competition. In a statement issued earlier today, officials quoted an old Chinese proverb: “Courtesy demands reciprocity”, signalling the move is a deliberate tit-for-tat retaliation.
The U.S. tariffs, part of President Trump’s aggressive “reciprocal tariff” strategy, aim to reduce the trade deficit and protect American industry. While certain sectors such as pharmaceuticals and energy were spared, a broad range of Chinese goods now face crippling levies. China’s latest announcement mirrors this, targeting virtually all U.S. exports.
Tariffs to Hit Trade, Growth, and Consumers
The economic fallout is already being assessed. The U.S. exported $144 billion in goods to China in 2024, according to CNN Business, and analysts warn that the new Chinese tariffs could significantly reduce that figure.
On the Chinese side, economists at Goldman Sachs predict the move could shave 0.5 percentage points off China’s GDP growth in 2025, particularly as domestic demand remains shaky. In Beijing, 24-year-old retail worker Huang Zhe summed up the concern: “If American goods get too expensive, I’ll stop buying them.”
Meanwhile, American consumers may soon face higher prices on electronics, clothing, and toys—products heavily sourced from China. According to NBC News, U.S. households could see an average increase of nearly $1,900 per year, while companies across both nations prepare for layoffs and supply chain turmoil.
Beyond Tariffs: A Broader Economic Clash
The trade fight is extending beyond goods.
On April 4, Beijing announced export restrictions on rare earth minerals like samarium and gadolinium, key to tech and defence manufacturing. In tandem, 16 U.S. companies—including defence contractors—have been placed on China’s export control list, effectively blacklisting them from critical dual-use items.
The U.S. has retaliated with a crackdown on low-value Chinese e-commerce imports. Beginning May 2, the $800 de minimis exemption will be scrapped, raising import duties to 90% on parcels from companies like Shein and Temu.
Global Markets React
Markets took an immediate hit. The Dow Jones dropped 320 points on April 8 following China’s announcement, with S&P 500 and Nasdaq also sliding. Economists warn that the prolonged standoff could edge the global economy closer to recession, particularly as investor confidence erodes.
Posts on X (formerly Twitter) expressed both alarm and fatigue. One user noted, “This is symbolic—Chinese imports have been weak anyway—but symbolism matters in a trade war.” Another posted, “We’re in for a long one. No sign of talks, just tariffs and more tariffs.”
No Signs of Talks – Only Standoff
Despite the high-stakes drama, no new trade talks between President Trump and President Xi Jinping are scheduled. The White House has so far remained firm, with supporters arguing the strategy is about “leveling the playing field.”
Speaking to Fox Business, Rep. Jeff Van Drew defended the tariffs: “For decades, China played by its own rules. It’s time for fair trade.”
But critics, including the Tax Foundation, estimate that Trump’s tariff policies could shrink U.S. GDP by 0.7%, arguing the costs may outweigh any industrial benefit.
Meanwhile, China has filed a complaint with the World Trade Organization, accusing the U.S. of breaking international trade laws.
What’s Next?
As China’s 84% tariff on U.S. goods takes effect tomorrow, both nations appear locked into a dangerous economic tit-for-tat with no end in sight. Consumers and industries on both sides of the Pacific brace for further fallout, while global markets remain on edge.
This is a developing story. Stay with us for further updates as the trade war intensifies.
More from: Beijing · Donald Trump · Overseas News
