China Raises Tariffs on US Goods to 84% as Trade Rift Worsens
China Raises Tariffs on US Goods to 84% as Trade Rift Worsens
China retaliated against new tariffs imposed by President Donald Trump by announcing it would raise duties on US goods, roiling markets and deepening a trade war between the world’s largest economies.
The Chinese government will impose an 84% tariff on all imports from the US starting April 10, the Finance Ministry said in a statement Wednesday. China’s move came hours after the steepest American tariffs in a century went into force, taking Trump’s duties on Beijing this year to 104%.
US equity futures fell more than 2% after China announced the new tariffs, a move that followed the Asian country’s vow to “fight to the end.” Stocks in Europe slumped 4%. Beijing appears to have tweaked its tariff strategy, moving from answering immediately in the first two rounds to responding just as markets open in New York.
Xi hasn’t directly commented on Trump’s tariff hikes, but Liu Pengyu, spokesperson for China’s embassy in the US, on Wednesday shared a video of the top leader saying in 2020 that “intimidation or pressure will never work on the Chinese nation,” comments made on the 70th anniversary of China’s entry into the Korean War.
Chinese officials rushed to reassure the private sector as the trade spat worsened, with Premier Li Qiang telling a meeting of experts and entrepreneurs Wednesday that Beijing would work to expand domestic demand. In addition, he said that the economy was resilient and maintained its upward momentum in the first quarter.
By not matching the full 104% imposed by Trump, Beijing has shown some restraint, according to Josef Gregory Mahoney, a professor of international relations at Shanghai’s East China Normal University.
“China has reinforced its image of not being bullied while also showing to the world that it’s not going to sink the same level of absurdity, above all when it’s unnecessary and likely theater anyway,” he added.
So this is what Trump meant when he said other countries are kissing his ass?