China has fired a major shot in the escalating trade war with the United States, slapping steep new tariffs on American goods in direct retaliation to President Donald Trump’s latest round of import taxes.
Starting April 10, tariffs on U.S. products entering China will surge to a whopping 84%, up from the current 34%, according to a statement from the Office of the Tariff Commission of the State Council. The move comes just hours after the U.S. imposed tariffs exceeding 100% on Chinese imports—a dramatic escalation that now threatens to bring trade between the world’s two largest economies to a grinding halt.
Trade between the two powerhouses is massive. In 2024 alone, the U.S. exported $143.5 billion in goods to China, while Chinese imports to America totaled $438.9 billion, according to the U.S. Trade Representative’s office. The intensifying tit-for-tat could derail this crucial economic relationship and send shockwaves through global markets.
President Trump’s administration had warned other nations not to retaliate when it unveiled its sweeping new tariff policy last week. While some countries, like Japan, are signaling a willingness to negotiate, China is digging in its heels—swiftly responding with its own set of tariffs just days after Trump’s April 2 rollout. When China hit back, Trump doubled down, announcing another 50% increase, pushing total import taxes on Chinese goods to 104%.
The U.S. had already been hitting China, along with Canada and Mexico, with new tariffs as part of its strategy to curb the flow of fentanyl into the country. But the full-blown rollout of Trump’s second-term trade agenda has sent global markets reeling.
And it’s not just China retaliating.
On Wednesday, the European Union approved its first set of countermeasures against Trump’s steel and aluminum tariffs. The EU’s response will take effect on April 15, targeting a broad range of U.S. exports. The move follows Trump’s decision to slap 25% duties on European metals—and to impose 20% tariffs on imports from more than 180 countries.
In a strongly worded statement, the European Commission called the U.S. tariffs “unjustified and damaging,” warning of significant harm to both sides and to the broader global economy.
“The EU prefers a negotiated, balanced, and mutually beneficial outcome,” the Commission said, while making clear it won’t back down without a fight.
European Commission President Ursula von der Leyen echoed that sentiment, urging talks but also signaling Europe’s readiness to escalate: “We are prepared to respond,” she said. “But it is not too late to address concerns through negotiations.”
EU Trade Commissioner Maros Sefcovic laid out the economic damage: U.S. tariffs are hitting €380 billion ($420 billion) worth of European exports—about 70% of the bloc’s total exports to the U.S.. He estimated the U.S. would collect more than €80 billion in new duties, an eleven-fold increase from previous levels.
The second wave of EU countertariffs is expected to take effect on May 15.
As tit-for-tat tariffs mount across the globe, businesses, investors, and world leaders alike are bracing for what could become one of the most disruptive global trade conflicts in modern history. Whether diplomacy can reverse course—or if the spiral continues—remains to be seen.
