China Calls on Others After U.S. Imposes 145% Tax Levy on Chinese Goods

What Happened?

China has called out to other nations after the U.S. imposed a 145% tax levy on Chinese goods with no signs of backing down.

According to reports, China is attempting to form a united front to compel Washington to retreat despite the U.S. already receiving 'serious' trade deal offers.

National Economic Council director Kevin Hassett told CNBC Thursday that the U.S. is in talks with about 20 nations and two deals are 'almost closed.'

This comes after President Donald Trump authorized a 90-day pause and a substantially lowered reciprocal tariff for all other nations excluding China.

Trump said more than 75 countries have called U.S. representatives to negotiate a solution to the subjects being discussed.

China was excluded Trump said, 'based on the lack of respect that China has shown to the world’s markets.'

On Wednesday, China unveiled 84% levies on U.S. imports that match additional tariffs imposed by the Trump administration.

Instead of engaging in talks with the U.S., China has focused on talks with Europe, according to The Associated Press.

A phone call between Premier Li Qiang and European Commission President Ursula von der Leyen was held 'sending a positive message to the outside world.'

China is willing to work with the EU to jointly implement stronger ties and deepen trade, investment, and industrial cooperation, the official Xinhua News Agency reported.

Why it Matters

U.S. stocks took another major hit Thursday after a historic recovery following Trump’s slight retreat on the hefty universal tariffs.

Trump addressed reporters at The White House and pointed towards 'transition problems' but still believes the country is in good shape.

'In the end, it’s going to be a beautiful thing,' Trump said.

The market sell-offs have come as Democrat members have reacted in frustration over the sudden retreat that rattled markets.

Senators Adam Schiff (D-Calif.) and Ruben Gallego (D-Ariz.) sent a letter to Trump's cabinet asking for an investigation into potential conflicts of interest.

'This sequence of events raises grave legal and ethics concerns. The President, his family, and his advisors are uniquely positioned to be privy to and take advantage of non-public information to inform their investment decisions,' said the senators in their letter.

Republican member Sen. Mike Lee of Utah applauded Trump's actions, referencing his 'art of the deal' book, and approved of the 90-day pause.

Chinese officials say the U.S. escalation of tariffs is a mistake, severely infringing upon China’s legitimate rights and interests.

They've also reportedly accused the U.S. of 'blackmail' and vowed to 'fight to the end.'

Trump has also accused China of issuing retaliatory tariffs and pointed to the threat of synthetic opioids, including fentanyl, flowing into the U.S.

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

How it Affects You

The back-to-back tariff policy hikes raise the risk of causing a recession by the actions of the world’s two biggest economies.

Trump has increased his push that insists businesses should relocate their headquarters in the United States to pay no tariffs.

For other countries, his administration aims to 'rectify trade practices,' as additional levies may slow down growth and impact future consumer prices.

As far as China, a resolution may likely be far away.