US-China Tariff war: US President Donald Trump's reciprocal tariffs order is taking bizarre turns by the day. The latest development of the day is that the European Union has decided to stand by China, a powerful country that has been standing firm against the US decision.
China will increase tariffs on American goods by 84 percent effective from Thursday, April 10 2025, a sharp increase from the 34 percent previously announced, the Chinese Ministry of Finance has said. In a direct retaliatory move, the US has been hit back.
The move is a direct retaliation to the staggering 104% tariff imposed by US President Donald Trump on imports of Chinese goods, with the new US tariff regime set to take effect from April 09 2025. Trump had warned that he would increase the tariff rate if the retaliatory tariffs were not reduced.
"China will continue to take firm and decisive measures to safeguard our legitimate rights and interests" said Chinese Foreign Ministry spokesman Lin Jian.
Lin accused the US of abusing tariffs as a tool of coercion. He said Beijing would strongly oppose these, calling them "acts of oppression and hegemony." This escalating crisis between the world's two largest economies is likely to deal a severe blow to the global trade market.
China has said it doesn't care about the White House's order, directly stating that it will not tolerate any attempt to harm China's sovereignty, security and development interests.
Earlier, China had officially strongly condemned Washington's decision at the World Trade Organization (WTO). China warned that Trump's sweeping reciprocal tariffs would further destabilize global trade and clearly violate WTO rules.
China has argued that the US move undermines the multilateral trading system. If we impose tariffs on each other, it will lead to a trade imbalance and we will never be able to trade amicably with each other. China has warned the US that this arrogant decision by the US will cause harm to that country.
China and the United States are on the brink of a full-scale trade war after Donald Trump announced a staggering 104% tariff on all Chinese imports. The trade war is likely to reach a critical juncture, with both countries showing no signs of backing down from their resolve in the escalating crisis. With China warning it will resist US pressure "to the end" the trade war could reach a critical juncture.
