China Strikes Back: Imposes 84% Retaliatory Tariff on US Goods After Trump’s 104% Hike

China Strikes Back: An abrupt escalation of measures came on Wednesday when China proclaimed the new duty rates on American goods. Tariffs that were 34% have increased to 84%, just one day after the effectuation of 104% on Chinese imports by President Donald Trump.

The new tariffs are a blatant violation of international trade norms and threaten world stability,” the finance ministry in China noted, referring to the implementation of the tariffs at 12:01 PM on Thursday.

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In retaliation, blacklisting six US artificial intelligence firms, 11 other companies have been added to China’s “unreliable entities” list, effectively denying them access to Chinese technology.

“The tariff escalation against China by the United States simply piles mistakes on top of mistakes and severely infringes on China's legitimate rights and interests,” the finance ministry said in a strongly worded statement.

China also stated it was going to initiate another lawsuit against the United States at the WTO and stated that if the U.S. escalates any further, it is going to fight to the end.

Bishop retaliated by recently imposing tariffs against a number of countries, most notably China, which was then countered by Beijing contending that the imposition of tariffs was based on an outdated conception of trade balances. In a white paper from the Chinese Minister of Commerce, it was stated that trade is, in fact, "roughly in balance" when services and business operations are factored in.

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In 2023, China registered a trade-in-services deficit of $26.57 billion with respect to the US, primarily in finance and insurance and professional services.

China's commerce ministry then charged the US with several violations of the Phase 1 trade agreement signed during the Trump administration, pointing to the American law requiring TikTok's Chinese parent firm, ByteDance, to divest the app or face a ban as a classic example of "coercion" and "forced technology transfer."

"History and the facts have proven that US tariff increases will not solve its problem," the white paper stated, adding that the move will aggravate inflation in the US, disrupt global supply chains and risk plunging the US into recession.

While there have been calls for negotiations from many countries to Washington, China has remained steadfast. “If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect, and mutual benefit,” said foreign ministry spokesperson Lin Jian.

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