China has announced the imposition of an additional 84% tariff on all U.S. imports, escalating trade tensions between the two countries.
The move comes in response to President Donald Trump’s new tariff measures, which took effect today (April 9). Trump had previously vowed to increase duties on Chinese goods by an additional 50%, bringing the total tariff rate to 104%.
President Donald Trump and President Xi Jinping have been locked in a trade war since the Republican reclaimed the Oval Office (KIM KYUNG-HOON/AFP via Getty Images)
China’s retaliatory tariffs come into effect as of tomorrow.
Stock markets in Europe have dropped further following the announcement, with the FTSE 100 index of the UK’s biggest companies having dropped by 3.3 percent already today, the French Cac 40 is down 4 percent, as is the German Dax.
US stock markets won’t open for just under two hours – 9.30am ET.
Most of the US’ trading partners were hit with a baseline levy of at least 10 percent over the weekend, while as many as 60 countries are bracing for higher tariffs from today.
In his ‘Liberation Day’ speech, Trump specifically identified the European Union and China as the biggest culprits who ‘rip us off’ the most, and outlined reciprocal tariffs of 20 percent and 34 percent respectively.
What tariffs did Trump announce on China?
The US initially launched a trade war with China all the way back during Trump’s first term, and Joe Biden simply preserved the tariffs during his presidency.
The spat has been simmering away ever since, and has now reached boiling point with Trump back in office to continue his assault on Chinese imports.
Within days of returning to the White House, he took aim at China, Mexico and Canada, accusing them of facilitating illegal immigration and drugs into the States.
A 10 percent tariff was then applied to all Chinese imports to the US on February 4.
President Donald Trump’s 104 percent tariff on Chinese imports has now came into play (Kevin Dietsch/Getty Images)
This provoked China to strike back, applying 15 percent tariffs on coal and liquefied natural gas plus a 10 percent levy on crude oil, agricultural machinery and large-engine cars from the US as of February 10.
Then on March 4, Trump doubled the tariff on all Chinese imports to 20 percent.
Continuing the to-and-fro momentum, China retaliated by announcing tariffs of up to 15 percent on US farm products, like chicken, pork, soybeans and beef.
The POTUS then threatened to inflict a 25 percent tariff on all imports from countries that buy oil or gas from Venezuela, where China stands as the country’s biggest buyer, purchasing 68 percent of its oil in 2023, reports PBS.
On April 2, Trump then confirmed the US will charge a 34 percent tax on imports from China on top of the existing 20 percent, presenting a 54 percent hike in total.
Then of course, an additional 50 percent tax was placed on good today – taking the new combined total to 104 percent.
How did China respond?
As expected, China isn’t best pleased with the move.
Beijing declared in less than 72 hours that it would impose a 34 percent tariff on US products as of April 10 to match Trump’s tariffs.
In response, Trump said China would have another 50 percent tax applied as of April 9 – bringing the tariffs to a combined total of 104 percent – if the country refuses to remove the levy.
President Xi Jinping has introduced an additional 84 percent tariff on American goods (Ken Ishii – Pool/Getty Images)
China’s Commerce Ministry has accused the US of ‘blackmail’ and ‘bullying’ and hinted more counter-tariffs could be on the way for American goods in the stand-off with Trump.
The ministry said: “The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US.
“China will never accept this. If the US insists on its own way, China will fight to the end.”
The nation has also filed a lawsuit with the World Trade Organization (WTO), stating Trump’s tariffs ‘seriously violates WTO rules’.
With China today hitting back with a 84 percent retaliatory tariff.
