China Imposes 84% Tariff on US Goods in Escalating Trade War
April 9, 2025 — In a dramatic escalation of the ongoing trade conflict, China has announced an 84% tariff on all U.S. imports, retaliating against Washington’s recent decision to hike tariffs on Chinese goods to 104%. The move, effective April 10, 2025, marks one of the most aggressive economic countermeasures in years and raises fears of a full-blown trade war between the world’s two largest economies.
The Breaking Point: US Tariff Hike Forces China’s Hand
The Chinese government’s decision comes just one day after the U.S. increased its own tariffs on Chinese imports from 34% to 84%, with some sectors facing rates as high as 104%. Beijing condemned the move as “a severe violation of international trade rules” and accused Washington of “economic bullying.”
In a strongly-worded statement, China’s State Council declared:
“The U.S. has repeatedly escalated trade tensions, disregarding the mutual interests of both nations and the stability of global markets. China’s countermeasures are necessary, justified, and in full compliance with international law.”
The new tariffs will apply to a wide range of American goods, including agricultural products, automobiles, technology, and energy exports—hitting key U.S. industries already struggling with inflation and supply chain disruptions.
Economic Fallout: Who Gets Hurt the Most?
Analysts warn that this tit-for-tat tariff war could spiral out of control, leading to higher prices for consumers, disrupted supply chains, and slower global economic growth.
Dr. Li Wei, an economist at Peking University, told reporters:
“This isn’t just about China and the U.S. anymore. The entire global economy is at risk. If both sides refuse to back down, we could see stagflation, job losses, and even a recession in key markets.”
American farmers and manufacturers are expected to bear the brunt of China’s tariffs. The U.S. soybean, pork, and semiconductor industries, which rely heavily on Chinese buyers, could face billions in losses. Meanwhile, Chinese factories may struggle with rising costs as U.S.-made machinery and components become prohibitively expensive.
Global Reactions: Markets Tumble, Allies Watch Nervously
Stock markets in Asia and Europe plunged following the announcement, with the Dow Jones Industrial Average dropping over 500 points in pre-market trading. The IMF and WTO have both called for “urgent de-escalation,” warning that prolonged trade hostilities could derail the fragile post-pandemic recovery.
European Trade Commissioner Markus Berger expressed concern:
“We urge both sides to return to negotiations. A prolonged U.S.-China trade war would have catastrophic consequences for the global economy.”
What’s Next? Will Biden or Xi Blink First?
With neither side showing signs of backing down, the question now is: Who will cave under economic pressure?
- China has a history of using long-term economic resilience to outlast trade wars, as seen in the 2018-2020 conflict.
- The U.S., however, faces midterm elections in 2026, and rising consumer prices could turn voters against the Biden administration.
Professor John Carter, a trade expert at Harvard University, predicts:
“This could go two ways: Either both sides negotiate a truce within months, or we enter a new Cold War-era economic standoff that lasts years.”
Conclusion: A Dangerous Game of Chicken
The latest tariff hikes signal a dangerous hardening of positions between Washington and Beijing. While China frames its move as a necessary retaliation, the U.S. insists it is defending its industries from “unfair trade practices.”
