On April 9, 2025, China officially announced the imposition of a massive 84% retaliatory tariff on all goods imported from the United States. This drastic move follows the enactment of President Donald Trump’s 104% total tariff on Chinese imports, marking a significant escalation in the already tense trade relationship between the world’s two largest economies.
Trump’s New Tariffs Trigger Swift Response
Earlier this year, President Trump returned to the Oval Office and quickly reignited his hardline trade policies. Within weeks, he introduced a series of tariffs targeting countries he accused of taking advantage of the United States. China was singled out as the “greatest abuser,” according to Trump’s speech on “Liberation Day,” where he outlined a multi-step plan to raise import taxes. Initially, a 10% tariff on Chinese goods was implemented in February. That rate steadily increased — to 20% in March, then 54% in early April, before finally jumping to 104% after an additional 50% tariff was announced on April 9.
In response, China moved quickly. Less than 24 hours after the full 104% rate was activated, Beijing imposed an 84% blanket tariff on all American imports, a move described by Chinese officials as necessary retaliation.
What’s Affected by the Tariffs?
The tariffs cover a broad range of goods. The US had previously targeted Chinese imports including electronics, machinery, textiles, and vehicles. In turn, China’s new tariffs affect American exports like:
- Agricultural products (soybeans, beef, pork, chicken)
- Energy (crude oil, liquefied natural gas)
- Automobiles and auto parts
- Industrial and farming equipment
These tariffs will raise prices for consumers and producers in both countries and could have ripple effects throughout global supply chains.
Market Reaction: Stocks Take a Hit
News of the escalating tariff war had an immediate impact on financial markets. In Europe, major indices fell sharply — the FTSE 100 dropped 3.3%, while France’s CAC 40 and Germany’s DAX also declined by 4%. US markets, which had not yet opened at the time of the announcement, were expected to follow suit. Analysts warned that investor confidence could erode if the trade conflict continues to intensify, potentially disrupting global economic recovery.
China Accuses the US of “Blackmail” and Files WTO Complaint
The Chinese Ministry of Commerce issued a strongly worded statement, accusing the United States of “blackmail” and “economic bullying.” The ministry warned that China would “fight to the end” if the US refused to de-escalate.
Furthermore, China has lodged a formal complaint with the World Trade Organization (WTO), arguing that the US tariffs are in clear violation of international trade rules. The WTO is expected to launch an investigation, though any resolution could take months or even years.
Geopolitical Ramifications
Beyond the economic fallout, the tariff war is straining diplomatic relations. Trump has linked trade issues with other geopolitical concerns, including illegal immigration and energy partnerships. He has also threatened countries that buy oil from Venezuela, where China is a primary purchaser. With this latest standoff, China and the US appear to be entering a new phase of economic confrontation, reminiscent of the trade war during Trump’s first term. However, this time the stakes are even higher, with tariffs reaching levels never before seen in modern trade history.
What’s Next? Conclusion
Experts predict further retaliation unless both sides agree to return to negotiations. For now, businesses in both countries are bracing for higher costs, uncertain markets, and disrupted supply chains. Consumers, too, are likely to feel the impact as prices rise on goods ranging from electronics to food. As tensions rise, the world watches closely — hoping that diplomacy can prevail over economic warfare.
