Less than 24 hours after United States President Donald Trump signed off on a last-minute amendment hiking duties on imports from China, Beijing responded by slapping steep new tariffs of its own.
The European Union (EU) joined the fight by approving duties of up to 25 per cent on a broad list of U.S. products, as European leaders attempt to bring Washington to the negotiating table.
China announced 84 per cent tariff on U.S. goods from the 34 per cent previously announced, effective April 10, 2025. It also blacklisted 12 U.S. companies for export control reasons and added six to its “unreliable entity” list, meaning they face restrictions and potential penalties in China. Both go into immediate effect.
Companies such as American Photonics and Novotech are now banned from exporting dual-use items. Those on the unreliable entities list, including Shield AI and Sierra Nevada Corporation, will be prohibited from engaging in import and export activities related to China, as well as making investments in the country.
China’s retaliatory actions followed the Trump administration’s imposition of a hefty 104 per cent tariff on Chinese imports. The ‘reciprocal tariffs’ aimed at numerous countries, including Nigeria (14 per cent), went into effect yesterday, intensifying a global trade war, particularly with China.
The Asian country pledged to fight against Trump’s tariffs to the end and showed no willingness to negotiate with Trump. Beijing asserts that the economic exchanges between the world’s two largest economies are roughly in balance.
Speaking through its X handle, the Chinese Ministry of Commerce said, “if the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary counter-measures” and fight to the bitter end.
China has also filed a new and formal complaint to the World Trade Organisation (WTO) regarding the heightened U.S. tariffs, claiming that the situation has dangerously escalated. In its statement, China expressed grave concern and firm opposition to the U.S. actions, arguing that reciprocal tariffs would not resolve trade imbalances but would ultimately harm the U.S.
Last week, China introduced a 34 percent tariff on all goods imported from the U.S. alongside export controls on rare earth minerals and other measures in response to Trump’s Liberation Day tariffs.
In retaliation, Trump raised tariffs by an additional 50 per cent on Chinese goods, declaring that negotiations had been terminated. The U.S. has a significant trade deficit with China, importing more than it exports. Chinese exports to the U.S. amounted to approximately $440 billion in 2024, nearly three times the value of American exports to China, which totalled around $145 billion.
Meanwhile, China has called upon India to stand together against the U.S. abuse of tariffs and overcome difficulties. They said they would continue to work with the rest of the world to safeguard the multilateral trade system with the WTO at its core.
Reacting to Beijing’s tariff hike against the US’ reciprocal tariff decision, U.S. Treasury Secretary, Scott Bessent, described China’s action as ‘unfortunate’. He claimed “China doesn’t want to come and negotiate because they are the worst offenders” in the international trading system, asserting that China had the most imbalanced economy in the history of the modern world.
In a further retaliatory move, Trump raised China’s tariff rates from 104 per cent to 125 per cent. He announced this yesterday while pausing tariffs for dozens of other countries. He accused China of failing to show respect to the world’s markets.
Trump authorised a 90-day pause on reciprocal tariffs he had earlier imposed on more than 75 countries, noting that both developments were with immediate effect.
The announcement was made in a post on his Truth Social handle, yesterday, in which he stated that those countries had not retaliated in any way against the U.S.
IN a statement, yesterday, the EU reiterated its desire to negotiate with the U.S. government rather than engage in a trade war.
“The EU considers the U.S. tariffs unjustified and harmful, not just to both our economies but to the global economy as a whole,” the commission said. “Our goal remains a fair and balanced outcome through dialogue with the U.S.”
Despite the appeal for diplomacy, the EU confirmed that it would begin collecting tariffs on selected American imports starting April 15. After extensive internal discussions, yesterday, EU officials scaled back the original retaliation list, initially valued at $28 billion, but still moved forward with targeted duties.
Notably, American bourbon (wine), once considered a key target, was removed from the list following threats from Trump to impose steep tariffs on European wine, which could severely impact France and Italy.
