China said it is raising its tariffs on U.S. products to 84%, up from its previously announced 34%, after President Trump’s import duties on Chinese good went into effect today at a rate of 104%.
Mr. Trump’s broad-based tariffs, which apply to imports of almost every nation, kicked in after midnight Eastern time in the U.S. But on Wednesday afternoon the president announced he is pausing most of the new import taxes for 90 days and lowering the “reciprocal tariff” rate to 10%, effective immediately,
At the same time, Mr. Trump said he’s increasing the tariff on Chinese imports to 125%.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” he wrote on Truth Social.
The president continued, “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
China decries U.S. “mistake”
China’s announcement signals Beijing isn’t backing down in a global trade war sparked by Mr. Trump’s April 2 decision to levy so-called “reciprocal tariffs” on almost every nation. In response to that announcement, China said it would counter by placing the same duty — 34% at the time — on U.S. imports, which prompted Mr. Trump to slap another 50% tariff on Chinese imports.
Mr. Trump’s tariffs be paid by U.S. companies that import products from China. Those companies are likely to pass on the cost of all or some of the import duties to American consumers, hiking prices on everything from iPhones to clothing made in China, according to experts.
In an April 9 statement, China said called Mr. Trump’s decision to add another 50% tariff as a “mistake upon a mistake.” It also called Mr. Trump’s tariffs as an example of “unilateralism, protectionism and economic bullying.”
Wednesday’s newest measures from Beijing include adding 11 American companies to a so-called “unreliable entities” list that would bar Chinese companies from selling them dual-use goods. Among the companies are American Photonics, and SYNEXXUS, both of whom work with the American military.
So far, China has not appeared interested in bargaining. “If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Ministry of Foreign Affairs spokesman Lin Jian Wednesday.
China now controls about 35% of the world’s manufacturing, compared with 12% for the U.S., according to the Centre for Economic Policy Research. Beijing has also expanded its exports to other countries, particularly developing nations, as it seeks to lessen its reliance on the U.S., research group Onyx Strategic Insights noted in a recent report.
“China has spent the last five years Trump-proofing its economy — it has been working to nationalize supply chains, it has been working to penetrate different export markets, particularly in the developing world,” Scott Lincicome, a trade expert at the Cato Institute, a libertarian think tank, told CBS MoneyWatch. China is “willing to endure the pain, thinking they can handle it longer than we can, and they might have a point.”
China was the third-largest export market for the U.S. in 2023, following Canada and Mexico, with $145 billion in goods shipped to the Asian nation that year, according to the U.S.-China Business Council. Oilseeds and grains are the top export that the U.S. sends to China, followed by oil and gas.
EU also hitting back
Separately, the European Union on Wednesday announced its own retaliatory measures against the U.S. The 27-country trading bloc announced tariffs on more than $22 billion in U.S. products, including soybeans, motorcycles and beauty products, according to AFP.
“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” the European Commission said in a statement issued after EU member states approved the measures.
The Trump administration has imposed a 25% tariffs on vehicles imported from the EU, along with a 20% reciprocal levy.
