In a bold escalation of its trade standoff with the United States, China has announced a staggering tariff hike on American imports, raising duties from 34% to 84% effective April 10. The move is a direct counterpunch to President Donald Trump’s latest trade offensive, which saw US tariffs on Chinese goods soar past 100% in some categories earlier this week. The tit-for-tat measures signal a deepening rift between the world’s economic titans, threatening global markets and supply chains already reeling from years of tension.
China’s Ministry of Commerce justified the increase as a “necessary response” to what it called “unilateral and protectionist” policies from Washington. The new tariffs will hit a broad range of US exports, including agricultural products, machinery, and consumer goods. U.S. exported $143.5 billion in goods to China in 2024; Beijing’s economic leverage now threatens this trade flow. Meanwhile, the US imported $438.9 billion in Chinese products last year, a trade imbalance that has long fueled Trump’s ire.
The latest salvo follows Trump’s April 2 rollout of sweeping levies targeting Chinese imports, which he paired with threats of further action against nations that retaliate. While allies like Japan have hinted at dialogue, China has doubled down. “We will not bow to economic coercion,” a Chinese foreign ministry spokesperson declared Wednesday, accusing the US of undermining free trade principles.
US officials fired back swiftly. Treasury Secretary Scott Bessent, appearing on CNBC, labeled China’s tariff hike “a self-inflicted wound,” arguing that its export-driven economy stands to lose more in a prolonged conflict. “They’re digging their own grave with this escalation,” Bessent said, pointing to China’s reliance on global markets.
The fallout has rattled investors worldwide. On Tuesday, Wall Street’s Dow Jones Industrial Average plunged 18%, narrowly avoiding a bear market, while European exchanges saw similar sell-offs. In Asia, Taiwan’s Taiex Index dropped 7% Wednesday, reflecting fears of collateral damage across the region. Economists warn that the spiraling trade war could slash global GDP growth by as much as 1.5% in 2025, with rising costs for consumers and businesses alike.
As both nations dig in, analysts see little hope for de-escalation. “This is no longer just a trade dispute—it’s a geopolitical power play,” said Dr. Ellen Chen, an economist at Stanford University. With Trump’s second term agenda in full swing, the world braces for a turbulent economic chapter.
