China Strikes Back with 84% Tariffs on US Goods Effective April 10, Escalating Trade War Tensions
Bangkok, April 9: In a sharp escalation of the ongoing trade war between the world’s two largest economies, China has announced a sweeping 84% tariff on imports from the United States, effective from April 10, in a retaliatory measure against a series of punitive trade actions imposed by US President Donald Trump.
This dramatic increase in tariffs follows President Trump’s recent threat to impose even steeper reciprocal tariffs on Chinese goods, as part of his broader agenda to “rebalance the global economy” and reduce the persistent US trade deficit. Last week, Beijing had already imposed 34% tariffs on American goods in response to Washington’s earlier actions.
The escalating trade battle began in February when the US imposed successive tariff rounds targeting Chinese exports. The confrontation intensified on April 2, when President Trump levied a 10% global tariff on imports from multiple countries. Just days later, on April 4, he announced an additional 34% tariff specifically on Chinese goods, prompting Beijing to respond in kind within hours.
In a tit-for-tat move, China retaliated with 34% tariffs on key American imports, notably targeting agricultural products worth $30 billion, a direct hit at American farmers—a core political support base for Trump. In a further reaction to China’s defiance, Trump escalated the levies to 50%, raising the total US tariff burden on Chinese goods to an unprecedented 104% under his current term. Including tariffs from his previous term, the overall US tariff impact on Chinese exports has now reached 115%, according to estimates by the South China Morning Post.
The stakes are massive: Trump’s tariffs target $430 billion worth of Chinese exports, while US exports to China stood at $143 billion in the previous year. The US trade deficit with China in 2024 was recorded at $295.4 billion.
Beijing’s latest round of retaliatory tariffs also includes stringent export port controls on rare earth elements, critical for high-tech industries such as defence, semiconductors, and smartphones—sectors where the US remains heavily dependent on Chinese supply chains. These measures are seen as strategically aimed at key American industries.
Despite putting on a defiant front, China is grappling with significant economic headwinds, including a slump in exports, weak domestic consumption, and a deepening housing market crisis. According to Larry Hu, Chief China Economist at Macquarie Investment Bank, Trump’s latest tariff wave could reduce China’s export volume by up to 15 percentage points, and potentially shave off 2–2.5% from its GDP growth.
In a proactive step to offset the impact of US tariffs and boost the competitiveness of Chinese exports, the People’s Bank of China (PBOC) further devalued the yuan, setting the official midpoint rate at 7.2066 per US dollar, allowing exporters to earn more when repatriating foreign income.
Meanwhile, Chinese Premier Li Qiang conveyed confidence in the country’s ability to withstand external shocks. Speaking with European Commission President Ursula von der Leyen, Li said China possesses “enough policy tools” to stabilize its economy and is fully prepared to safeguard national interests, uphold international trade norms, and ensure economic resilience.
“These resolute measures are not only meant to protect China’s sovereignty and developmental interests but also to uphold fairness and justice in international trade,” Premier Li emphasized, according to Xinhua, the state-run news agency.
With tensions mounting and both sides hardening their stances, analysts fear that the US-China trade war may spiral into a prolonged conflict, with severe implications for global trade flows, inflation, and financial markets. Businesses worldwide are bracing for potential supply chain disruptions and increased costs as the standoff continues.
