The trade standoff between the United States and China has intensified dramatically. On Wednesday President Donald Trump approved an additional 50 percent tariff on Chinese goods, raising the total tariff burden to an unprecedented 104 percent. This decision came after China refused to withdraw its own retaliatory tariffs on American imports.
Trump had given Beijing a 24-hour deadline to roll back its 34 percent tariff on US goods. When China refused, calling the demand “blackmail,” the White House acted quickly.
Until last month, Chinese goods entering the US faced a 10 percent tariff. But Trump arguing that the US was being “robbed and ripped off,” introduced a “reciprocal tariff” policy. Under this, countries charging higher tariffs on American goods would face equivalent treatment. For China that meant an additional 34 percent, raising the rate to 44 percent.
Soon after citing a “national emergency” caused by trade deficits and security risks the US imposed a 10 percent baseline tariff on all countries. This brought China’s effective tariff to 54 percent.
With Wednesday’s hike of 50 percent targeted solely at China, the total has now surged to 104 percent a nearly 100 percent increase in just a week. Despite this Trump signaled that talks were still possible. On his social media platform, Truth Social he wrote, “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call.”
Earlier in the day, China had issued a sharp response. “The US threat to escalate tariffs against China is a mistake on top of a mistake,” said the Commerce Ministry. “If the US insists on having its way, China will fight to the end.”
As the world’s two largest economies engage in a high-stakes trade war, global markets have reacted with unease. Stock markets have experienced their steepest declines since the COVID-19 pandemic, and investors are bracing for more volatility.
With neither side showing signs of compromise, the global economy now faces an uncertain future, caught in the middle of an escalating battle between Washington and Beijing.
