China Hits Back with 84% Tariffs on U.S. Imports as Trade War Escalates

In an escalating trade war, China has sharply raised its tariffs on U.S. imports, increasing them to 84% from the previous 34%, effective April 10. This move follows the U.S. government’s latest tariff hike on Chinese goods, which pushed duties on Chinese imports to over 100%.

The announcement came from China’s Office of the Tariff Commission of the State Council, which made clear that this retaliatory step is aimed at countering the Trump administration’s aggressive trade policies. The tariffs are set to target a range of U.S. goods, further intensifying the ongoing economic conflict between the world’s two largest economies.

A New Phase in the Tariff Tension

The move signals another chapter in the tit-for-tat trade battle that has already strained global markets. According to the Office of the U.S. Trade Representative, U.S. exports to China totaled $143.5 billion in 2024, while imports from China were $438.9 billion — highlighting the trade imbalance that has fueled the friction.

The escalation threatens to devastate trade flows, and analysts are concerned that it could exacerbate economic slowdowns in both countries. The U.S. has long maintained that China’s trade practices are unfair, while China insists that it is only responding to U.S. protectionism.

Trump Administration’s Response

Following China’s initial tariff retaliation after the April 2 rollout, President Donald Trump announced an additional 50% hike on Chinese goods, bringing U.S. import taxes to a staggering 104%.

In response to China’s 84% tariff increase, U.S. Treasury Secretary Scott Bessent told Fox Business that it’s unfortunate that China refuses to negotiate. He criticized China’s role in the global economy, calling them the “worst offenders” in the international trade system and asserting that the escalating tariffs would ultimately be a “loser” for China.

Global Economic Impact

The ongoing trade war is already having a global economic impact, stoking fears of slower growth, higher inflation, and declining corporate profits. The S&P 500 saw a sharp drop, finishing nearly 20% down from its peak, officially entering bear market territory. Other global stock markets have also taken a hit, with South Korea’s Kospi Index also entering a bear market.

Meanwhile, stock indices in Shanghai and Hong Kong have similarly suffered from the ripple effects of the escalating trade conflict.

Looking Ahead

As both sides continue to ramp up their tariffs, it’s unclear how long this trade war will last or what its ultimate cost to the global economy will be. Investors remain wary, and many are watching for any signs of compromise or further escalation.