Trade War Escalates: China Hits Back With 84% Tariff on US Goods as Global Retaliation Grows
Highlights:
- China retaliates with an 84% tariff on U.S. goods, following the U.S.’s 104% tariff on Chinese imports.
- Global trade tensions spike as the Trump administration’s sweeping tariffs officially take effect.
- Wall Street reels, with the S&P 500 nearing bear market territory.
- Allies like Canada and the EU prepare their own countermeasures, while negotiations begin with Japan and South Korea.
April 9, 2025 — Beijing/Washington D.C. — The U.S.-China trade war has officially reignited and escalated rapidly, as China announced an 84% retaliatory tariff on American imports in response to President Trump’s newly imposed 104% tariff on Chinese goods.
The fresh salvo from Beijing came just hours after the U.S. duties kicked in at 12:01 a.m. ET Wednesday, hitting not only China but 184 other U.S. trading partners.
The result? Global markets are in turmoil, multinational companies are scrambling, and prices for everyday goods are expected to surge—again.
“We warned the U.S. not to underestimate our resolve,” said a spokesperson for China’s Ministry of Commerce. “We will fight to the end if forced to.”
What Triggered This? Trump’s new tariff package includes:
- A 50% tariff hike on Chinese goods.
- 34% in reciprocal tariffs.
- A 10% blanket tariff on all imported goods (effective April 5).
- Additional country-specific tariffs (e.g., 20% on EU goods, auto duties on Canada).
The administration insists the goal is “fair trade”, accusing China and other countries of long-standing trade imbalances.
“We’re not backing down. If they want to talk, great. If not, we’ll walk,” Trump said Tuesday from the White House.
Retaliation Begins
China’s 84% tariff is its harshest in modern trade history, affecting a broad swath of U.S. exports, especially:
- Agricultural goods (soybeans, corn, beef)
- Technology hardware
- Energy products
Other U.S. allies are now following suit:
- Canada: Announced new vehicle import tariffs.
- European Union: Preparing counter-tariffs impacting 70% of EU exports to the U.S., facing an average 20% duty under the Trump policy.
Wall Street on Edge
Markets responded swiftly and harshly. After a brief Tuesday morning rally on hopes of negotiation, reality sank in:
- S&P 500 (^GSPC): Down 1.6% Tuesday, continuing losses Wednesday and nearing bear market territory.
- Nasdaq (^IXIC): Over 2% loss Tuesday; tech stocks especially vulnerable.
- 10-Year Treasury Yield: Spiked to 4.29%, as investors weigh inflation and recession risks.
“There’s no doubt tariffs are now the main market driver,” said Fundstrat’s Mark Newton. “Investors are reacting minute-by-minute to every trade headline.”
Negotiations Underway – But Fragile
President Trump said that Japan and South Korea have already opened lines of communication. South Korean Acting President Han Duck-soo told CNN Tuesday that Seoul would not join China in retaliatory action, preferring quiet diplomacy.
Still, no formal talks with China have been announced, and Beijing’s tone suggests no willingness to back down anytime soon.
What This Means for You:
- Prices on consumer goods from electronics to clothing are likely to rise.
- Farmers and exporters could face falling demand overseas.
- Investors should expect continued volatility until there’s a clear negotiation path.
📌 More Reading
#ChinaTariffs #TrumpTariffs #TradeWar #Markets #WallStreet #Economy2025 #S&P500 #GlobalTrade #USChinaRelations #YahooFinance