New Escalation in US-China Trade War as Beijing Puts Retaliatory Tariff at 84%

New Delhi: In a sharp retaliation to US President Donald Trump ’s steep 104% tariffs, China has announced additional tariffs of up to 84% on American goods. The Chinese Foreign Ministry confirmed that the new tariffs will come into effect from April 10, intensifying the already heated trade standoff between the world’s two largest economies.   

Besides, China has also stepped up its countermeasures in the escalating trade war, placing 12 US entities on its export control list and adding 6 American firms to its "unreliable entity" list, according to an announcement by the Chinese commerce ministry.

The move came just a day after Donald Trump imposed a 104% tariff on Chinese exports, with the White House confirming the duties would be collected from April 9. Following China's announcement, US stock index futures plunged, reflecting market jitters over the deepening standoff between the world’s top economies.

US China Trade War

'China Vows to Fight to The End'

Earlier in the day, China hit back with a fiery policy statement, vowing to "fight to the end" against what it called Washington’s escalating trade aggression, as the 104% tariff on Chinese exports to the US officially came into effect. 

In a detailed white paper released by China’s Ministry of Commerce, Beijing accused the US of violating the Phase 1 trade deal signed during Trump’s first term. The document pointed to recent US legislative moves, like the push to ban TikTok unless sold to American buyers, as breaches of bilateral commitments not to force technology transfers.

China also challenged Washington’s narrative of trade imbalance, arguing that when factoring in services and revenue from US firms operating in China, the overall trade is “roughly in balance”.

In 2023, China ran a $26.57 billion services deficit with the US, spanning sectors such as insurance, banking, and accounting—figures typically ignored in Trump's tariff calculations, which focus solely on goods.

The white paper further warned that the tariff escalation would "backfire" on the US, fueling financial market volatility, inflation, and industrial decline, while increasing the risk of an American economic recession.

Meanwhile, Chinese foreign ministry spokesperson Lin Jian said Beijing has shown no interest in bargaining under pressure. “If the US truly wants to resolve issues through dialogue, it must do so with equality, respect, and mutual benefit,” he said.

Chinese Premier Li Qiang, on the other hand, asserted that China has sufficient policy tools to "fully counter" any external shocks, following Trump’s sweeping 104% tariffs on Chinese imports. 

Stand Together: China Turns to India As Trump Tariffs Give Dragon The Biggest Jolt

Yesterday, Beijing extended a strategic olive branch to New Delhi, urging India to stand together with China against what it described as Washington’s "unilateral bullying" and economic aggression. 

In a strong message posted on X (formerly Twitter), Yu Jing, spokesperson of the Chinese Embassy in India, said, "Facing the U.S. abuse of tariffs, which deprives countries, especially Global South countries, of their right to development, the two largest developing countries should stand together to overcome the difficulties.”

Could India Gain from the Escalating US-China Trade War?

As tensions rise between the United States and China over escalating tariffs, India may find itself at the cusp of a unique opportunity in the global trade landscape. With China, the world’s manufacturing giant, locked in a high-stakes economic standoff with Washington, global supply chains are bracing for impact — and India could emerge as a key alternative.

If Beijing stands firm and President Trump follows through on his proposed 50% hike in tariffs, Chinese exports could face a major blow. Such high duties would render Chinese goods far less competitive in the American market, potentially reshaping trade routes and supply priorities.

In 2024, US-China trade was worth $582.4 billion, with China enjoying a massive surplus — $438.9 billion in exports to the US versus $143.5 billion in imports. New tariffs could destabilise this balance, creating gaps that other economies, including India, might fill.