Washington, April 9, 2025 — The U.S.-China trade standoff has officially entered dangerous territory. In a stunning move that confirms escalating tensions, former President Donald Trump followed through on his threat to impose an additional 50% tariff on Chinese imports, bringing the total U.S. tariff on China to an unprecedented 104% starting Wednesday.
The White House made the dramatic announcement late Tuesday night, hours after China refused to back down from its 34% retaliatory tariff on American goods. In a bold move, Beijing had dared the U.S. administration to follow through—Trump wasted no time in doing exactly that.
A Week of Escalation: From 10% to 104% in Six Days
Until recently, Chinese goods entering the U.S. were subject to a 10% tariff, a rate that President Trump had often criticized as a sign of America being “robbed and ripped off.” He accused China of being a “tariff abuser” that imposed disproportionately higher duties on American products.
Last week, in what he dubbed a “reciprocal tariff policy,” Trump announced that the U.S. would mirror tariff policies of its trading partners. For China, this meant an additional 34%, to match Beijing’s rate — bringing the total tariff to 44%.
But the situation escalated rapidly.
On April 2, invoking a “national emergency” caused by long-standing trade deficits and what he claimed were security risks, the White House imposed a baseline 10% tariff on all countries, raising China’s effective tariff burden to 54%.
Now, with Tuesday’s announcement of an extra 50% specifically for China, Chinese exporters must deal with a crushing 104% tariff on all goods bound for the United States.
Trump’s Message: “Waiting for China’s Call”
Despite the aggressive move, Trump hinted that diplomacy wasn’t off the table. Taking to his social media platform Truth Social, he wrote:
“China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call.”
The message leaves a glimmer of hope for de-escalation, but signals from Beijing suggest otherwise.
China Fires Back: “Blackmail” and “Mistake on Top of Mistake”
Beijing didn’t mince words. Responding to Trump’s ultimatum to reverse its retaliatory tariff, China’s Commerce Ministry issued a fiery statement:
“The U.S. threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the U.S.’s blackmailing nature… If the U.S. insists on having its way, China will fight to the end.”
The firm response dashes immediate hopes of negotiation, and global markets are already reacting to the tit-for-tat.
Global Markets Rattled: Worst Crash Since COVID-19
Stock markets around the globe have experienced their biggest single-day fall since the COVID-19 pandemic. Key indexes in New York, London, Hong Kong, and Frankfurt plunged between 3% to 5%, with technology and manufacturing stocks taking the brunt.
Investors are rattled by the possibility of a long and costly trade war between the world’s two largest economies. Analysts warn that continued escalation could spiral into a full-blown global economic downturn, affecting everything from oil prices to job markets.
What’s Next? Global Trade Hangs in the Balance
With neither Washington nor Beijing blinking, the world braces for further shocks. Supply chains that had just begun to recover from pandemic-era disruptions now face fresh uncertainty.
Trade analysts believe China may respond with more targeted tariffs, possibly hitting U.S. agriculture, automotive, and tech sectors—industries with strong political influence in the U.S.
Meanwhile, Trump’s hardline tariff policy is being closely watched by political allies and rivals alike. As the former President eyes a strong return to the political stage, these moves could shape the tone of U.S. foreign and economic policy in the upcoming election year.
