China Hits U.S. Goods with 84% Tariffs as Trade Dispute with Trump Escalates
China has announced sweeping new tariffs of 84% on American products, a direct response to U.S. President Donald Trump’s latest move to raise trade barriers. The action intensifies the ongoing economic standoff between the two largest economies in the world.
The U.S. had earlier rolled out what it described as “reciprocal” tariffs, targeting Chinese imports with levies that now exceed 100% in some categories. In response, Beijing’s new measures were swiftly introduced, signaling a firm stance against what it called repeated violations of fair trade norms.
In a statement, Chinese officials criticized the U.S. for escalating tensions, calling the tariffs a harmful misstep that undermines international trade rules. The response, they said, is part of a broader commitment to defend national interests while maintaining a readiness to engage in talks—provided the conversation is based on mutual respect.
Trump’s administration had initially planned to raise tariffs by 34 percentage points, but after China refused to concede, the increase jumped by another 50 points. These moves build on a prior 20% levy already in place, pushing trade restrictions to new extremes.
Financial markets reacted swiftly, with global indices dipping and U.S. stock futures falling shortly after China’s announcement. Meanwhile, China also took additional steps to penalize American businesses. Export restrictions were imposed on a dozen U.S. firms, limiting their access to dual-use goods—items that serve both civilian and military functions. Furthermore, six more companies from the U.S. were blacklisted under China’s “unreliable entity list,” restricting their ability to operate or invest in the Chinese market.
China has also formally lodged a complaint with the World Trade Organization over the latest U.S. actions, citing violations of global trade practices. Despite this, U.S. officials dismissed the countermeasures. The Treasury Secretary accused China of having the most unbalanced economy in modern history and downplayed the impact of Chinese tariffs, noting that U.S. exports to China are far outpaced by Chinese exports to the U.S.
While rhetoric on both sides remains firm, China’s public messaging continues to combine determination with a willingness to negotiate. A government spokesperson reiterated that dialogue must be based on equality and shared benefit. In a policy paper released the same day, China outlined its trade position and accused Washington of pursuing a unilateral and protectionist agenda.
A senior official noted that while China is not seeking conflict, it won’t tolerate actions that infringe on its sovereignty or the economic rights of its people. The country remains prepared to deploy a range of policy tools to safeguard its interests if needed.
Although China’s economy has shown signs of revival after recent challenges in its real estate sector and local government debt, the export sector remains critical. In anticipation of potential economic fallout from the trade rift, Chinese authorities have already launched measures to boost domestic spending and reduce dependency on foreign markets.
Despite rising tensions, China maintains that it has the capacity and the will to counteract any future trade restrictions, and it will respond decisively if provoked further.
