Escalating the already tense trade standoff, China announced on Wednesday that it will impose an 84 per cent retaliatory tariff on all American goods, a significant hike from the previously declared 34 per cent.
The move comes in direct response to United States President Donald Trump’s sweeping 104 per cent tariff imposed on Chinese imports.
According to China’s finance ministry, the new tariff structure will come into effect from April 10. The announcement signals a hardening of Beijing's stance as it confronts mounting trade restrictions from Washington.
In addition to the increased tariffs, China’s commerce ministry also revealed that 12 American entities have been added to its export control list, while six more have been included in its "unreliable entity" list.
The immediate reaction on global markets was sharp, with US stock index futures tumbling following the news. The timing of the announcement — just a day after Trump declared the new 104 per cent tariff — underscores the rapid deterioration of trade ties between the two economic giants.
President Trump had previously stated that his administration was prepared to impose tariffs of over 100 per cent if China retaliated.
Speaking on his Truth Social platform, he reacted strongly to Beijing’s earlier 34 per cent duty, declaring that China “played it wrong” and “panicked,” adding that such a move was something the country “cannot afford to do.”
But Beijing's latest action tells a different story. With the new 84 per cent tariff, the Xi Jinping-led government is signalling its readiness to push back forcefully. Chinese officials insisted that the trade between the two countries remains balanced and criticised the 104 per cent levy as unfair and unjustified.
The Chinese commerce ministry, in a firm statement, warned that if Washington continues to escalate trade restrictions, Beijing is fully prepared to take further measures. “China has the firm will and abundant means to take necessary countermeasures and fight to the end,” the statement read.
In a parallel move to the tariff increase, China also tightened its grip on the export of strategic resources. It recently announced controls on the export of medium and heavy rare earths – critical materials used in manufacturing advanced technologies like computer chips and electric vehicle batteries.
Officials justified the restrictions as a way to protect national interests and uphold international responsibilities, including non-proliferation commitments.
Meanwhile, Chinese Premier Li Qiang offered reassurances about the nation’s economic resilience. He emphasised that China possesses ample policy tools to counter external shocks and that the country’s growth prospects for 2025 remain strong.
Qiang noted that despite the growing trade tensions, the world’s second-largest economy remains confident and well-equipped to adapt.
As of now, China has not indicated any willingness to return to the negotiating table, unlike several other countries that have opened discussions with the White House.
The rising tit-for-tat tariff war, driven by nationalistic posturing and political rhetoric on both sides, now threatens to not only strain bilateral trade but also unsettle global supply chains and investor confidence.
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