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In a new escalation, China announced an increase in tariffs on American goods by 84% starting April 10, 2025, in direct response to the United States raising its tariffs on Chinese goods by over 100%.
This announcement came from the Tariff Committee of the Chinese State Council, reflecting the escalating trade tensions between the world's two largest economies. In 2024, the United States exported goods to China worth $143.5 billion, while it imported goods worth $438.9 billion from China.
The Trump administration announced last week a new policy to increase tariffs, warning that other countries should not retaliate. While some countries like Japan showed a willingness to negotiate, China chose to respond strongly and announced this sudden increase.
This announcement followed China's initial response to the tariffs imposed by the United States on April 2, where Trump announced another 50% increase, raising the total taxes imposed on Chinese goods to 104%.
Scott P. Bissent, the U.S. Treasury Secretary, said, "It is unfortunate that China refuses to negotiate, as they are among the worst violators of the international trading system, and they have the most imbalanced economy in modern times. This escalation will be harmful to them."
This trade war has raised significant concerns among investors worldwide, as the chances of economic growth slowing, rising inflation, and declining corporate profits have increased, leading to a sharp decline in financial markets. On Tuesday, the S&P 500 Index closed down about 20% from its peak, pushing it into a bear market. The South Korean KOSPI Index also entered a bear market on Wednesday, and stock markets in Shanghai and Hong Kong have also seen sharp declines since the announcement of U.S. tariff increases on April 2.
