The United States is set to impose a 104% tariff on Chinese imports starting April 9, 2025, escalating the ongoing trade war between the two nations. This move comes after China’s refusal to withdraw its retaliatory tariffs against the US.
The trade tensions between the US and China have been intensifying, with both countries engaging in a series of tit-for-tat tariff hikes. In response to former President Trump’s plan to impose an additional 50% tariff on China, Chinese President Xi Jinping adopted a hardline stance, accusing Washington of “blackmail” and vowing to “fight to the end” if Trump follows through on his threats.
On April 7, 2025, China announced sweeping retaliatory tariffs of 34% on all US imports, effective April 10, 2025. This move is seen as a broader economic pushback against the US. The US had previously imposed a 34% tariff on all Chinese goods entering the country, marking the most aggressive phase yet in the ongoing trade war.
The White House has positioned its aggressive tariff strategy as a long-term effort to protect American workers and industries, despite short-term economic turbulence. US Treasury Secretary Scott Bessent defended the administration’s trade strategy, arguing that the tariffs are necessary to rebalance the economic relationship with China.
Electric Vehicles: 100% tariff, up from 25%
Semiconductors: 50% tariff, up from 25%
Solar Cells: 50% tariff, up from 25%
Lithium-ion Batteries: 25% tariff, up from 7.5%
Medical and Surgical Gloves: 25% tariff, up from 7.5%
The escalating trade war has raised concerns about market volatility, with three consecutive days of losses on Wall Street. The US-China trade tensions have disrupted the global trading system, prompting fears of a recession.
As the trade war intensifies, global markets and diplomatic observers are bracing for further escalation. The situation remains fluid, with both countries dug in on their positions. The US is prioritizing its allies and trading partners, such as Japan and Korea, over China.
