China has replied to the tariff policies of the United States president, Donald Trump, by increasing its tariffs on U.S. imports to 84%, leading both powers into a full-blown trade war.
Starting April 10, tariffs on U.S. products entering China will rise from 34% to 84%, as part of a retaliatory measure for the 104% tariff increase that the United States imposed on Chinese products starting at midnight due to the high tariffs imposed by China.
This tariff increase is part of an escalation in the trade war between the world's two largest economies.
According to the United States Trade Representative's Office, in 2024, the value of U.S. exports to China was USD 143.5 billion, while imports from China reached USD 438.9 billion.
The Trump administration launched a new tariff policy last week, warning other countries not to apply retaliatory measures. Meanwhile, some countries, like Japan, have shown willingness to negotiate on tariffs, China has taken a more belligerent stance and quickly announced a retaliatory tariff.
After China's initial response to the implementation of tariffs on April 2, Trump announced an additional 50% increase, raising the total tariffs on Chinese products to 104%.
The United States Treasury Secretary, Scott Bessent, criticized China following its latest move and stated that the Asian nation has "the most unbalanced economy in modern history" and that the tariff escalation will be detrimental to them.
Bessent also stated that China's unwillingness to negotiate is unfortunate, as he considers them "the worst offenders in the international trade system."
Before the full implementation of this new trade policy in April, the United States had already imposed additional tariffs on China. China, along with Canada and Mexico, had been subject to new tariffs at the start of Trump's second term, as part of the administration's efforts to prevent fentanyl from entering the United States.
The origin of the tariffs imposed on China, however, stems from the significant trade barriers that the Asian giant has against the United States, which increased the cost of U.S. products by 67%. Additionally, the large trade deficit that the United States has with China was another factor for the imposition of tariffs.
