China on Wednesday brought the total tariffs on US products to 84%, in response to Donald Trump’s 104% duties on Chinese goods, Reuters reported.
Furthermore, the European Union (EU) agreed on the first countermeasures to retaliate against the US tariffs, escalating a global trade war that puts the global economy at risk.
Earlier this month, Trump announced sweeping tariffs on imports to the US from all countries. China, the US second top exporter, took the hardest blow with a 54% tariff, while the European Union (EU) faced a 20% tariff. These duties were due to take effect on April 9, 2025.
Tit-for-Tat Tariffs
China responded to the initial tariffs with a 34% increase in tariffs on US products. However, the US President threatened an additional 50% tariff if China did not backtrack on its countermeasures.
On Wednesday, Trump has made good on his threat, raising the total tariffs against Chinese products to 104%.
In response, Beijing announced another 50% tariff increase on US goods, to take effect on Thursday. It also imposed restrictions on 18 American companies to its “unreliable entities” list, banning them from purchasing dual-use goods from Chinese companies. Most of the newly-restricted US companies work in defense-related industries.
“The US escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes of China’s legitimate rights and interests and seriously undermines the rules-based multilateral trading system,” the Chinese Finance Ministry said in a statement.
Moreover, China’s Ministry of Commerce said in a statement: “If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end.”
EU Retaliation
In a similar vein, the EU on Wednesday announced its first countermeasures against Trump’s tariffs, due to come into force next Tuesday.
The bloc will impose a 25% tariff on a range of US products worth around $23 billion. These imports include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing and dental floss.
The EU duties will take effect in stages: on April 15, May 16 and December 1. In a statement, the European Commission said: “These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome.”
Trump has imposed a 25% tariff on EU steel, aluminum and vehicles and an additional 20% reciprocal tariff on nearly all other goods.
