China imposes 84% ​​tariffs on all US goods

China imposes 84% ​​tariffs on US

 China Responds to Trump Tariffs: 84% on All US Goods

China raised its retaliatory tariffs on the United States from 34% to 84%, effective April 10, in response to Trump's 104% tariffs on China that took effect Wednesday morning, escalating the trade war between the world's two largest economies.

The Chinese Ministry of Finance announced on Wednesday that Beijing would impose 84% tariffs on US goods starting Thursday, up from the 34% previously announced. The Chinese response came just hours after Trump's sweeping measures took effect, bringing the total tariffs announced this year to 104%.

China also announced it would file a lawsuit against the United States at the World Trade Organization, added six companies to its "unreliable entities list," and placed 12 US companies on an export restriction list.

Market Reaction

U.S. stock futures fell about 1.7 percent after China announced the new tariffs, following Beijing's pledge to "fight to the end." European stocks, on the other hand, fell more than 4 percent.

Emerging market stocks fell to their lowest levels in more than a year as China retaliated against the latest U.S. tariffs. The MSCI Emerging Markets Index fell more than 1 percent, hitting its lowest level since February 2024, after losing $1.7 trillion in value in the space of a week.

The additional tariffs on U.S. imports announced by President Donald Trump last week took effect Wednesday morning at 0401 GMT, including tariffs on China of up to 104 percent. The U.S. government calculated the tariffs for each country based on factors including trade deficits, subsidies, and exchange rate controls.

China to Trump: Dialogue Still Possible

China described Trump's decision to escalate tariffs this week as "mistake upon mistake," but kept the door open for dialogue with the United States. Chinese exports were already facing comprehensive tariffs imposed this year, in addition to punitive taxes dating back to Trump's first term that continued under the Biden administration.

Tensions between Washington and Beijing have escalated since Trump returned to the White House in January, and the US president has yet to speak with his Chinese counterpart, Xi Jinping, more than two months after his inauguration. The two countries are also facing a stalemate over China's alleged role in the flow of fentanyl into the United States, one of the pretexts Trump used in two previous rounds of tariffs.

Fentanyl has become a flashpoint in US-China relations, with Trump accusing Beijing of not doing enough to prevent its components from reaching the United States. China, in turn, accuses the Trump administration of using this issue as a pretext for imposing tariffs, with the Chinese foreign minister describing it as "blackmail."

The Trump administration has also accused China of imposing non-tariff barriers that harm US exports and businesses, complaints outlined in a recently published annual report by the Office of the United States Trade Representative.