China’s 84% tariffs in retaliation against US President Donald Trump’s steep levy hike on Chinese imports came into effect Thursday, marking a new escalation in the intensifying trade war between the world’s two largest economies.
The Chinese response includes a reciprocal 34% tariff increase following Trump’s initial round of tariffs, which Beijing rejected despite Washington’s warnings. After Trump raised tariffs to 104% on Chinese imports, China countered with an 84% duty on US goods. Trump then increased tariffs further to 125% on Wednesday, prompting Beijing to add 18 US companies to its trade restriction list alongside other retaliatory measures.
Amid no signs of a truce, China is looking to expand trade ties elsewhere. President Xi Jinping is expected to visit Southeast Asia, including Malaysia, next week to strengthen regional partnerships. Additionally, China and the European Union pledged to uphold the multilateral trading system centered on the World Trade Organization (WTO), according to Beijing’s Commerce Ministry.
During a virtual meeting, Chinese Commerce Minister Wang Wentao and European Commissioner for Trade Maros Sefcovic discussed enhancing China-EU cooperation and addressing the global effects of US tariffs. Sefcovic criticized the US measures for severely impacting international trade and expressed the EU’s readiness to collaborate with China and other WTO members to ensure smooth trade operations.
