The trade war between the United States and China has reached new heights, with both nations imposing unprecedented tariffs on each other’s goods. On April 9, 2025, China announced retaliatory tariffs of 84% on US imports, effective April 10, while US President Donald Trump countered by increasing tariffs on Chinese imports to a staggering 125%, effective immediately. These tit-for-tat measures underscore the escalating tension between the world’s two largest economies.
China’s decision to impose 84% tariffs on US goods came as a direct response to Trump’s earlier move to raise tariffs from 104% to 125%. Beijing’s State Council Tariff Commission criticized the US for violating international norms and vowed to protect China's interests. The new tariffs target a wide range of American exports, including agricultural products, energy resources, and industrial goods.
In addition to tariff hikes, China has implemented non-tariff measures such as export restrictions on rare earth materials and travel advisories warning its citizens against visiting the US. These actions aim to counterbalance the economic impact of US policies while asserting China's position in the global trade system.
President Trump escalated the trade conflict further by imposing 125% tariffs on all Chinese imports. In his statement, Trump justified the move by accusing China of disrespecting global markets and refusing to negotiate fairly. While most other trading partners received a temporary reprieve with a flat 10% tariff for 90 days, China was explicitly excluded from this concession.
The White House warned other nations not to retaliate against US tariff policies, stating that compliance would be rewarded. However, China stood firm, declaring its intention to "fight to the end" in defense of its legitimate rights and interests.
Both nations are doubling down on their positions:
China's Stance: Beijing has filed formal complaints with the World Trade Organization (WTO) and continues to criticise US policies as harmful to multilateral trade systems.
US Position: The Trump administration remains focused on reducing its trade deficit with China, which stood at $295 billion in 2024.
Meanwhile, other global players like the European Union have also imposed retaliatory tariffs on US imports, further complicating the situation.
The escalating trade war between the US and China is reshaping global economic dynamics. With tariffs now reaching record levels—84% from China and 125% from the US—businesses and consumers in both nations are bracing for higher costs and reduced trade opportunities. As neither side shows signs of backing down, the world watches closely for any signs of resolution—or further escalation—in this high-stakes economic conflict.
