China today announced retaliatory tariffs of 84% on U.S. imports matching and intensifying extensive new levies imposed by President Donald Trump.
The tit-for-tat move has triggered a global economic standoff involving not just Beijing and Washington but now also Europe which has unveiled its own retaliatory measures acting as a turning point in one of the most aggressive trade confrontations in modern history.
The retaliatory action announced by China’s State Council Tariff Commission comes after the White House hiked its total tariffs on Chinese goods to a staggering 104%, a move Beijing condemned as “a mistake upon mistake” that violates international trade rules and endangers global economic stability.
“This isn’t just a trade war anymore. It’s a global economic earthquake,” said Peter Boockvar, Chief Investment Officer at Bleakley Financial Group. “Nearly half of the world’s GDP is now caught in a tariff crossfire.”
Both governments appear locked in a cycle of escalation with Trump’s administration fixed on a shocking 50% extra to an already announced 34% increase, pushing total duties on Chinese goods over the triple-digit mark.
China, vowing to “fight to the end,” responded not only with tariffs but also export restrictions targeting 12 American firms and added six U.S. companies to its “unreliable entities” blacklist.
And if that wasn’t enough, the European Union joined the fight declaring it would begin imposing its own duties next week particularly targeting U.S. steel and aluminium calling the Trump tariffs “unfair and unilateral.”
Meanwhile, ordinary businesses and consumers are bracing for the worst. Economists warn that the soaring costs of imported goods, disrupted supply chains and crumbling investor confidence could drive inflation and reduce growth in an insecurely balanced post-pandemic global economy.
Despite the chaos, U.S. Treasury Secretary Scott Bessent remains unshaken brushing off China’s retaliation as “a loser for them,” pointing out that China exports five times more to the U.S. than vice versa.
“They’re the surplus country,” Bessent told Fox Business. “They can raise their tariffs but so what?”
In a fiery press conference, China’s Foreign Ministry insisted that U.S. must show “respect, equality and mutual benefit” to have any hopes of resolving the conflict through dialogue.
China’s spokesperson of Foreign Ministry responded to U.S increased import tariffs on his X platform saying China will never back down from any challenge.
“China is not a seeker of trouble. But make no mistake: When challenged, we will never back down. Intimidations and threats never work with China,” posted Lin Jian.
At the same time, China released a white paper decrying America’s “unilateral and protectionist” actions but left the door open for negotiation if Washington tones down its approach.
With China’s export-driven economy already battling domestic debt, a shaky real estate sector and the aftermath of harsh COVID-19 lockdowns, any serious blow to trade could tip the scales into deeper economic trouble.
U.S.-China trade reached $582 billion in 2024, and this latest round of tariffs threatens to ruin that relationship, ripple through global supply chains and raise the cost of everything from tech gadgets to food.
This marks one of the most aggressive economic plays of Trump’s second term, a strategy aimed at forcing trading partners to the table by wielding America’s massive consumer market as leverage. But unlike smaller nations, China isn’t blinking and neither is the EU.
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