China strikes back: Tariffs soar to 84% in escalating trade war

China has announced it will raise tariffs on U.S. goods to 84%, starting Thursday (April 10).

This is a steep increase from the previously planned 34%, according to a statement from the Chinese finance ministry on Wednesday.

The move is the latest strike in a growing global trade war triggered by U.S. President Donald Trump. Earlier the same day, Trump’s new wave of “reciprocal” tariffs came into force, affecting dozens of countries.

The most severe impact was on China, with a massive 104% tariff on Chinese goods entering the U.S. The European Union is also expected to announce its own countermeasures later today.

President Trump says his tariffs are meant to fix the U.S. trade deficit, but the aggressive measures have shaken the global economy.

Long-standing trade relationships are now under strain, and fears of a worldwide recession are growing. Major companies have lost trillions in market value as a result.

Financial markets reacted quickly and sharply on Wednesday. Stock markets around the world dropped. In the U.S., stock futures tumbled and bond markets saw a heavy selloff, raising concerns that foreign investors might be pulling money out of U.S. assets. European stocks also fell further, and oil prices hit new four-year lows.

In its official statement, China’s finance ministry said, “The U.S. escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously undermines the rules-based multilateral trading system.”

Along with the new tariffs, China also placed restrictions on 18 American companies, mainly in the defense industry. These are in addition to more than 60 U.S. firms already targeted in response to Trump’s earlier tariff actions.

As tensions rise, the global economy watches nervously, unsure how far this trade war will go or how much damage it will do.

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