China announces 84% tariffs on US in big trade war escalation

As the trade war between the United States and China escalates and Donald Trump’s reciprocal tariffs take effect, China on Wednesday responded sharply with a series of measures, including steep retaliatory tariffs, restrictions on US companies, and a fresh complaint filed with the World Trade Organisation (WTO).

Beijing announced it will impose tariffs of up to 84 per cent on US goods starting Thursday, a sharp increase from the previously declared 34 per cent. China also filed a new complaint with WTO, warning that the US tariffs pose a serious threat to global trade stability and added 12 US companies to its export control list and placed six others on its unreliable entities list in response to Donald Trump’s tariff actions.

“The US escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes of China’s legitimate rights and interests and seriously undermines the rules-based multilateral trading system,” China’s Finance Ministry said in a statement.

China’s retaliatory steps came after the Trump administration imposed a staggering 104 per cent tariff on Chinese goods. Trump’s “reciprocal” tariffs on dozens of countries took effect on Wednesday, including the massive duties on Chinese goods, escalating a global trade war.

China has vowed to “fight to the end” against Trump’s tariffs and has shown no indication of engaging in talks with the White House, unlike many other countries that have begun discussions.

Beijing maintained that the economic exchange between the two largest economies in the world is “roughly in balance”. The Chinese government released a white paper on US-China commercial ties in which it called the trade gap between the world’s top two economies “inevitable”.

China filed a new complaint with the WTO against further US tariff measures. It told the WTO that “the situation has dangerously escalated”. In a statement to the trade body, China said, “As one of the affected members, China expresses grave concern and firm opposition to this reckless move. Reciprocal tariff is not – and will never be – a cure for trade imbalances. Instead, they will backfire, harming the US itself”.

China’s Ministry of Commerce announced that it has added 12 US companies to its export control list and six to its unreliable entities list, effective Thursday. Among those placed on the export control list are American Photonics and Novotech, which will now face a ban on the export of dual-use items.

Companies added to the unreliable entities list — including Shield AI and Sierra Nevada Corporation — will be prohibited from engaging in China-related import and export activities, as well as from making investments in the country.

Last week, China announced a 34 per cent tariff on all goods imported from the US, export controls on rare earths minerals, and a slew of other measures in response to Trump’s “Liberation Day” tariffs. Trump then added an additional 50 per cent tariff on goods from China, saying negotiations with them were terminated.

The Chinese Ministry of Commerce said in a recent statement that if the US insists on further escalating its economic and trade restrictions, “China has the firm will and abundant means to take necessary countermeasures and fight to the end”.

The US says it has a significant trade deficit with China, meaning it imports more from China than it exports. According to US data, Chinese exports to the country totalled approximately USD 440 billion in 2024 — nearly three times the value of American exports to China, which stood at around USD 145 billion.

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