China has announced an 84 percent tariff on U.S. goods in a significant escalation of the ongoing trade conflict between the world’s two largest economies.
The new duty takes effect Thursday and replaces the previously implemented 34 percent tariff in a direct response to the United States’ recent decision to impose 104 percent levies on Chinese imports.
The Ministry of Finance in Beijing stated that the measure is intended to defend national economic interests and maintain a fair global trade environment.
The decision comes amid growing tensions fueled by reciprocal trade barriers and strategic competition in critical sectors such as technology and manufacturing.
In addition to the new tariff, China has added 12 American entities to its export control list and placed six U.S. firms on its unreliable entity list.
These measures are aimed at curbing the influence of foreign companies that pose security and trade risks, according to Chinese authorities.
The announcement triggered a broad selloff across global equity markets with Dow futures dropping by over 500 points while S&P 500 and Nasdaq 100 futures also fell sharply.
Shares of major U.S. corporations, including Apple, Meta, ExxonMobil and Chevron, posted notable declines as investor sentiment weakened.
U.S. Treasury Secretary Scott Bessent described China’s decision as unfortunate and counterproductive.
He noted that the U.S. intends to rebalance its economic strategy by prioritizing domestic manufacturing while encouraging China to boost internal consumption to drive growth.
The tariff escalation has sparked concerns about further disruption in global trade flows.
Analysts have warned that prolonged tension could undermine supply chains, raise input costs and slow down recovery across emerging and developed markets.
The European Union is reportedly preparing its own retaliatory framework in anticipation of spillover effects on member economies.
Market observers are closely watching the EU’s next move as the bloc navigates pressure to respond to trade distortions impacting its industrial base.
This latest round of tariffs follows the implementation of reciprocal trade policies under U.S. President Donald Trump who has defended the measures as necessary to correct what he describes as years of unfair trade practices by China.
With both nations now enforcing steep duties on each other’s goods, the risk of long-term fragmentation in global trade continues to rise.
The escalation comes at a time when the global economy is already facing headwinds from inflation, monetary tightening and geopolitical instability.
As of April 10, trade volumes between the U.S. and China are expected to contract further as the cost of compliance and cross-border trade increases.
Business leaders and institutional investors have called for dialogue to prevent further deterioration in commercial relations and global market confidence.
