84% tariff on US goods.....

China retaliates against Trump with total 84 percent tariff on US goods

The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.

By Camille Gijs

The Chinese finance ministry announced on Wednesday it will impose another 50 percent tariff on all goods coming from the United States, after Washington’s sweeping 104 percent tariff on Chinese goods took effect.

“The U.S.’s practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests,” the ministry said in a statement, stressing the move was “adding insult to injury.”

Trade tensions have soared between Beijing and Washington in recent weeks over tit-for-tat tariff escalations triggered by protectionist U.S. President Donald Trump.

U.S. tariffs on Chinese imports had been set to increase by 34 percent on Wednesday as part of Trump’s universal tariffs. But Trump added another 50 percent Tuesday after China did not roll back its own 34 percent retaliatory tariffs. In practice, China is adding another 50 percent on a pre-existing 34 percent tariff, bringing the total to 84 percent. That levy will kick in on Thursday.

“If the U.S. decides not to care about the interests of the U.S. itself, China and the rest of the world, and is determined to fight a tariff and trade war, China’s response will continue to the end,” Chinese foreign ministry spokesperson Lin Jian told reporters Wednesday.

On top of the new duties, China also added 18 companies to its unreliable entity list, as well as its dual-use export control list, essentially imposing new restrictions on them. 

China on Tuesday became the first country to challenge Trump’s universal tariffs at the World Trade Organization.

U.S. Treasury Secretary Scott Bessent, speaking on Fox Business, regretted China’s response as “unfortunate.” Before China’s response, Trump said that global leaders were willing to do anything to make a trade deal with him as American tariffs come into force.

The EU meanwhile agreed to its own retaliation against Trump’s steel and aluminum tariffs, imposing a 10 to 25 percent tariff on around €22 billion of U.S. products like soybeans, motorcycles and orange juice after the bloc’s 27 countries approved the measures on Wednesday.