China hits back at US with 84% tariff after Trump admin imposes 104% levy
New Delhi, Apr 9, 2025
US China trade war: Beijing had previously called Trump's ultimatum 'coercive' and stated that it would 'fight to the end'
China has announced that it will impose 84 per cent tariff on US goods from Thursday, a sharp increase from the previously declared 34 per cent, according to the country’s finance ministry, Reuters reported.
This move comes in response to US President Donald Trump’s decision to raise tariffs on Chinese imports to 104 per cent, effective Wednesday, intensifying the ongoing trade conflict between the world’s two largest economies.
The escalation follows Trump’s ultimatum to Beijing, demanding that it withdraw its retaliatory 34 per cent tariff on American goods within 24 hours or face harsher penalties. China’s refusal to comply has triggered Washington to impose an unprecedented 104 per cent levy on Chinese imports.
Earlier on Wednesday, Beijing responded to Washington’s demands, dismissing them as coercive. “The US threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the US’s blackmailing nature,” China’s commerce ministry said in a statement. The ministry further warned, “If the US insists on having its way, China will fight to the end.”
US-China trade war escalates
In February, US announced 10 per cent tariffs on China. Beijing retaliated with a 15 per cent tariff on US coal and liquefied natural gas products, and a 10 per cent tariff on crude oil, agricultural machinery, and large-displacement cars.
Trump criticised this, claiming that China’s significantly higher tariffs had unfairly drained billions from the US economy. US raised tariffs by another 10 per cent, bringing levies against Chinese imports to 20 per cent. China retaliated by imposing a 15 per cent tariff on US chicken, wheat, corn, and cotton, and a 10 per cent tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.
In response, Trump introduced a "reciprocal tariff" policy, which imposed a rate equivalent to half of the tariffs levied by any given country on US exports. This meant an additional 34 per cent tariff on Chinese imports, resulting in a cumulative tariff rate of 54 per cent. Now, with the latest additional 50 per cent tariff specifically targeting China, Beijing is facing an unprecedented levy of 104 per cent, nearly doubling its tariff obligations within a week.
Despite the escalation, Trump indicated that he was open to negotiations.
China has also been calling for trade talks with the US since Trump first announced tariff hikes. However, no reports of talks between the two nations have been reported.
[The Business Standard]
