China has retaliated against U.S. President Donald Trump’s tariff policies by increasing levies on U.S. imports to 84%, up from 34%, effective April 10, according to a State Council announcement.
This hike follows the latest U.S. tariff increase on Chinese goods, which surpassed 100% and began at midnight, marking a further escalation in the tit-for-tat trade conflict between the world’s two largest economies. In 2024, the U.S. exported $143.5 billion in goods to China while importing $438.9 billion.
The Trump administration’s new tariff policy, announced last week, warned against retaliation. While some nations seemed open to negotiation, China swiftly responded with counter-tariffs. This latest move follows China’s initial response to the April 2 U.S. tariff rollout, after which Trump increased import taxes on Chinese goods to 104%.
Before this broader trade policy, the U.S. had already imposed tariffs on China, along with Canada and Mexico, at the start of Trump’s second term, citing efforts to stop fentanyl. This escalating trade war has unsettled global investors, raising concerns about slower economic growth, higher inflation, and lower corporate profits, contributing to a significant stock market downturn in April.
