China hikes tariffs on U.S. goods to 84%, as EU also retaliates against Trump tariffs

China has announced that it will be increasing its tariffs on U.S. products to 84%, a significant increase from the previously announced 34%. This decision comes in response to President Trump’s implementation of import duties on Chinese goods at a rate of 104%. In a tit-for-tat move, Mr. Trump has also raised the tariffs on Chinese imports to 125%.

The ongoing trade war between the two economic powerhouses has escalated further with these latest developments. President Trump’s broad-based tariffs, which apply to imports from almost every nation, went into effect after midnight Eastern time in the U.S. However, in a surprising move, he has decided to pause most of the new import taxes for 90 days and lower the “reciprocal tariff” rate to 10%. This sudden shift in policy aims to ease tensions and create room for negotiation.

China, on the other hand, has decried the U.S.’s actions as a “mistake upon a mistake.” The Chinese government views Mr. Trump’s tariffs as an example of “unilateralism, protectionism, and economic bullying.” In response to the escalating trade tensions, Beijing has increased its tariffs on American products and added 11 U.S. companies to an “unreliable entities” list, restricting their ability to do business with Chinese companies.

Despite calls for dialogue and negotiation from China, the country has not shown any interest in backing down. With China controlling a significant portion of the world’s manufacturing and exporting goods to various countries, it has been working to diversify its markets and reduce its reliance on the U.S. This strategic move aims to withstand the impact of the trade war for a more extended period than the U.S.

In a parallel development, the European Union has also announced retaliatory measures against the U.S., imposing tariffs on over $22 billion worth of American products. The EU considers the U.S. tariffs unjustified and damaging to both sides and the global economy. This move further complicates the global trade landscape and adds to the uncertainty surrounding international trade relationships.

As the trade war continues to unfold, the implications for businesses and consumers in both the U.S. and China remain uncertain. The impact of these tariffs on prices, supply chains, and economic growth will continue to be closely monitored by experts and policymakers. The need for constructive dialogue and a mutually beneficial resolution to the trade dispute is becoming increasingly urgent to prevent further escalation of tensions and economic harm.