The United States has dramatically escalated its trade war with China by imposing a cumulative 104 percent tariff on Chinese imports, effective today. This follows President Trump's demand for Beijing to reverse its 34 percent retaliatory tariffs on American goods.
The hike, consisting of a 20 percent tariff in March, 34 percent last week, and an additional 50 percent this week, marks one of the most aggressive US trade actions in recent history.
The move came shortly after Chinese Premier Li Qiang criticized "unilateralism, protectionism and economic coercion" in a call with EU Commission President Ursula Von der Leyen, asserting China has the means to "fully offset" external economic shocks and defend global trade norms.
White House Press Secretary Karoline Leavitt confirmed no delay in the tariffs, stating Trump is "putting the American people first." In response to the initial US tariffs, China had already imposed a matching 34 percent duty on American goods, effective April 10, and its Commerce Ministry vowed further "firm countermeasures." Beijing also implemented export controls on several rare-earth elements.
The escalating trade conflict has sent shockwaves through global markets. The S&P 500 has fallen 20 percent from its February peak, the Dow Jones over 17 percent, and the Nasdaq entered bear market territory. China's Hang Seng Tech Index has plummeted 27 percent in a month, and the yuan has weakened significantly, while Chinese government bonds have rallied due to investor anxiety. Adding to the global trade tensions, the US also recently announced a 26 percent tariff on Indian imports.
Also Read: Trump’s Reciprocal Tariffs Take Effect India
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