China Announces 84% Retaliatory Tariffs on U.S. Goods in Response to Trump

What Happened?

China pushed back against the Trump administration Wednesday after unveiling new levies of more than 80% on U.S. imports.

The 84% retaliatory tariff on U.S. goods matches additional tariffs imposed recently by President Donald Trump.

White House officials announced Tuesday that duties of more than 100% were set to take effect on Chinese imports after a key deadline was missed.

Beginning Thursday, April 10, tariffs on U.S. goods entering China will rise by 50% according to a translation from the State Council Tariff Commission's announcement.

'The U.S. escalation of tariffs on China is a mistake upon mistake, severely infringing upon China’s legitimate rights and interests, and seriously damaging the multilateral trading system based on rules,' the announcement read.

Starting midnight Thursday, the latest U.S. tariff increase totaling at least 104% on all Chinese goods will also take effect.

The back-to-back tariff hikes raise the risks of a trade war between the world’s two biggest economies.

Why it Matters

Trump said Tuesday that he was waiting to hear from China in a sign some viewed as a last-minute negotiation attempt.

After failing to hear from China regarding reversing its reciprocal tariffs, White House officials announced that the U.S. was moving forward with additional levies.

Retaliatory actions from China came despite Trump's warning to other countries that planned to issue additional tariffs on the U.S.

China’s commerce ministry reportedly accused the U.S. of 'blackmail' and vowed to 'fight to the end' after Trump's increased threats.

Meanwhile, Trump has accused China of issuing retaliatory tariffs on top of record-setting tariffs, non-monetary tariffs, and 'illegal subsidization of companies.'

The U.S. goods trade deficit in 2024 with China was $295.4 billion.

Trump pointed to the threat of synthetic opioids, including fentanyl, flowing into the U.S. from China as additional reasons for his administration's efforts.

While economists grow concerned, Trump insists it's 'a great time to buy' and for businesses to relocate their headquarters in the United States.

In a recent post on Truth Social, Trump said, 'BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!'

How it Affects You

The Trump administration and officials in Beijing push forward with tariff hikes despite fears of causing a recession in 2025.

Trump believed a resolution with China might have been possible.

China reportedly would still have to take a back seat behind other countries if negotiations are had.

However, a resolution with China might still take place.

Trump sees these global trade norms as a way to boost U.S. manufacturing and bring back more jobs lost from outsourcing.

Additional levies until then may slow down growth and impact future consumer prices amid Trump’s quest to 'rectify trade practices.'