The post China-US Tariffs Soar: Beijing Hits Back With 84% Tariff Hike and Business Bans appeared first on Coinpedia Fintech News
China Slams US With 84% Tariffs
China is hitting back harder in the trade war as it announced it will raise tariffs on American goods to a staggering 84% starting Thursday, up from the previously set 34%, effective from April 10, 2025, according to the Ministry of Finance of the People’s Republic of China.
It also added 12 U.S. companies to its export control list, banning exports of certain items. Six others, including Shield AI and Sierra Nevada Corporation, were labeled “unreliable” and banned from doing business or investing in China. China’s move further escalates the US-China tensions and the potential repercussions it could have on the global markets. U.S. stock index futures plunged sharply after the announcement.
“The situation has dangerously escalated. As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” China said in a statement to the WTO, reported Reuters. China’s State Council Tariff Commission termed U.S’ move as “unilateralism” and “economic bullying.”
China Slams US In WTO Meeting
At a WTO trade meeting, China slammed the US for its reciprocal tariffs calling it a violation of global trade rules which undermine the multilateral trading system. It stressed that reciprocal tariff will never be a cure for trade imbalances and warned that it will backfire harming the US.
Trump has hiked tariffs on Chinese imports by a massive 104% this year, intensifying a trade war that could seriously hurt China, the world’s top manufacturing exporter. However, China warned that it had the “determination and means” to continue the fight if Trump kept hitting with US tariffs.
Besides, China’s Central Bank has asked state-owned banks to cut down US dollar purchases as it will not allow for sharp Yuan declines. Since Trump announced new tariffs last week, the S&P 500 has seen its worst drop since the 1950s and is now close to entering a bear market — down nearly 20% from its recent peak.
Trump Not Too Worried
Even safe-haven assets like U.S. Treasuries are being dumped, and the dollar is declining. Global markets suffer as the European markets are down, and US futures point toward more losses after a rough day in Asia. However, Trump doesn’t seem too worried as he says that the tariffs are “permanent,” and also claims that they’re pushing other countries to negotiate.
In his first comment after China’s announcement, President Trump in a Truth social post urged companies to relocate to the U.S. He posted on Truth Social, calling it a “GREAT time” to move, promising zero tariffs, fast energy hookups, and no environmental delays. “DON’T WAIT, DO IT NOW!” he added.
Global markets quickly reacted to the news, with Bitcoin briefly dipping below $76,000.
China is responding to the U.S. hiking tariffs on Chinese goods by 104%. It’s a retaliatory move in the ongoing trade war, aimed at pushing back against what China calls U.S. “unilateralism” and “economic bullying.”
The new 84% tariff on U.S. goods will take effect on April 10, 2025.