The long-simmering US-China trade tensions have reignited with a vengeance. In a dramatic escalation that has rattled global markets, Beijing has announced sweeping new tariffs on American goods, raising its total levy to 84%. The retaliatory move follows a drastic and unexpected decision by US President Donald Trump to slap a total of 104% tariffs on all Chinese imports, marking the highest tariff rate imposed in the history of bilateral trade between the two global economic giants.

The Chinese Ministry of Finance confirmed on April 9 that it would impose an additional 50% tariff on US imports starting at noon on April 10. This is on top of the already-existing 34% tariff, and is part of a tit-for-tat response to Washington’s aggressive tariff expansion over the past month.

“The US’ practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system,” the ministry said in a strongly worded statement.

This latest flare-up echoes the trade war of Trump’s first term in office, when tariffs and counter-tariffs became a key feature of his economic strategy. But this time, the stakes are arguably higher. Since taking office for a second term in 2025, Trump has signaled a renewed and more aggressive stance on China. The president claims that Beijing has continued to engage in unfair trade practices, currency manipulation, and intellectual property theft – accusations China has long denied.

In early March, Trump initiated this fresh round of confrontation by slapping a 20% tariff on Chinese goods. Within weeks, he added an additional 34%, citing national security concerns and alleged Chinese cyber espionage, raising the total to 54%. Beijing responded with a symmetrical 34% hike on US goods, prompting Trump to double down again – this time with a stunning 50% additional tariff, bringing the total to 104%.

China’s response was swift and multilayered. Apart from the additional tariffs, which will impact a wide range of American exports including agricultural products, electronics, and vehicles, Beijing is also pursuing legal and administrative countermeasures. On April 8, China’s Ministry of Commerce filed a formal complaint with the World Trade Organization (WTO) accusing the US of “blatant violations of international trade law.”

Further intensifying the pressure, China placed six US companies on its “unreliable entity” list, effectively blacklisting them from key sectors of the Chinese economy. An additional 12 American firms are now subject to export controls that prohibit Chinese entities from supplying them with dual-use items – technologies that have both civilian and military applications.

“China will fight this trade war to the end,” the Ministry of Commerce said in an April 8 statement. “We will firmly defend our national interests, our industries, and the integrity of global trade norms.”

The Tariff Commission of the State Council released a follow-up statement on April 9, calling on the US to “immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect.”

President Trump, for his part, remains defiant. Speaking at a National Republican Congressional Committee (NRCC) dinner in Washington, he declared that the tariffs would stay “until they [China] make a deal with us.” He accused Beijing of exploiting the US for decades through asymmetrical tariffs, intellectual property theft, and manipulation of trade norms.

“They’ve charged us 100 percent, 125 percent on many goods for years,” Trump said. “They ripped us off left and right. No more. We’re standing up for American workers.”

Trump’s messaging plays directly to his political base, which has long supported his protectionist trade policies. It also comes amid a broader effort by the Trump administration to re-industrialize the American economy by encouraging domestic manufacturing and reducing dependence on Chinese imports.

But critics warn that the cost of such policies may be borne by American consumers and businesses. Higher tariffs mean higher prices for imported goods, which can lead to inflationary pressures at home. American farmers, in particular, may suffer as China shifts to alternative markets for soybeans, pork, and other staples.

Financial markets responded with immediate volatility. The Dow Jones Industrial Average fell by 430 points shortly after news of China’s retaliatory measures broke. Asian markets also slipped, with the Shanghai Composite Index down nearly 2.4% by midday.

Global trade analysts are sounding the alarm. “This is not just a bilateral dispute anymore,” said Dr. Emily Larson, a senior fellow at the Center for Global Trade. “When the world’s two largest economies go to economic war, the ripple effects will be felt globally – from supply chains in Southeast Asia to exporters in Europe.”

Major US corporations have already begun lobbying the Biden-era holdover elements in Congress to intervene, though it remains unclear how much leverage they retain under the current administration. American business groups, including the US Chamber of Commerce and the National Retail Federation, have issued statements warning that a prolonged tariff war could lead to job losses and economic stagnation.

While both countries have left the door open for negotiation, neither appears willing to back down. Trump views toughness on China as a cornerstone of his economic legacy, while the Chinese government, facing domestic pressures and nationalist sentiment, is equally committed to maintaining a strong posture.

Experts believe that unless a diplomatic breakthrough is achieved soon, this round of the US-China trade war may be longer, more damaging, and more deeply entrenched than the previous one.

For now, the global economy is holding its breath. As of April 10, more than $1.5 trillion worth of goods flowing between the US and China will be subject to some of the steepest tariffs ever recorded. Whether this pressure campaign results in a new trade deal or collapses into prolonged decoupling remains to be seen.

But one thing is clear, the age of globalization and unfettered trade between Washington and Beijing is over – and a new era of economic confrontation has begun.

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Source: Weekly Blitz :: Writings