China responds to Donald Trump by imposing an 84% retaliatory tariff on American products

In the continuing trade conflict between the United States and China, Beijing on Wednesday responded to Donald Trump’s 104 percent tariffs by imposing its own increased tariffs of 84 percent, up from the earlier 34 percent, on all American products. The Chinese finance ministry announced that these increased tariffs will take effect on US goods starting April 10. Beijing had earlier declared a 34 percent retaliatory tariff on U.S. products.

China’s commerce ministry has revealed that it has added 12 US entities to its export control list and included 6 American entities on its “unreliable entity” list. Shortly after this announcement, reports indicated that US stock index futures experienced a significant drop. This follows a day after Trump enacted a 104 percent tariff on China, with the White House press secretary stating that the extra tariff will be enforced starting Wednesday, April 09.

Trump’s action was a reaction to China’s counteraction regarding his reciprocal tariffs, with the President mentioning on Tuesday that he was awaiting a response from China before enforcing duties over 100 percent. A week prior, shortly after Trump revealed his extensive tariffs, China declared it would impose an extra 34 percent tariff on all American goods starting April 10. Beijing also announced plans to regulate the exports of medium and heavy rare earths, which are essential for advanced products like computer chips and batteries for electric vehicles.

“The purpose of the Chinese government’s implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests and to fulfill international obligations such as non-proliferation,” China’s commerce ministry had said in a statement.

Trump had reacted to the 34 per cent levy saying that China could not afford to do it . He had written on his Truth Social network, “China played it wrong, they panicked – The one thing they cannot afford to do!”

China’s decision to raise the tariff from 34 percent to 84 percent reflects his promise to “fight to the end” against the tariffs imposed by Trump. Beijing contended that trade between the two countries was balanced as the 104 percent tariff on its exports to the US was implemented.

The government led by Xi Jinping has refused to indicate if it would engage in talks with the White House, as several other nations are currently doing.

“If the U.S. 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” the Chinese commerce ministry said in its statement.

Chinese Premier Li Qiang had also said that his country has ample policy tools to “fully offset” any negative external shocks as Trump imposed the 104 per cent tariffs across all Chinese imports.