Trade tensions between the United States and China soared on Wednesday as Beijing announced an 84% tariff on American imports, effective Thursday, in direct retaliation to sweeping new US levies imposed by former President Donald Trump.
The Chinese finance ministry confirmed the steep hike, up from the previous 34%, just hours after Trump’s 104% tariff on Chinese imports came into force. In a scathing statement, Beijing accused the White House of “bullying practices,” signaling a renewed phase of aggressive economic brinkmanship between the world’s two largest economies.
“This is a necessary response to continued economic coercion by the United States,” China’s Commerce Ministry stated. “We will not sit idly while China’s legitimate trade interests are undermined.”
The retaliatory move is part of a broader campaign by China to hit back at what it views as an increasingly hostile US trade policy under Trump, who has also expanded punitive tariffs to 60 other countries labeled the “worst offenders” on trade. These new levies, affecting everything from steel to electronics, also took effect today.
Speaking at a campaign rally, Trump doubled down on the tariffs, claiming that countries impacted are now eager to return to the negotiating table.
“They’re calling up and kissing my ass, begging for a deal,” he said, prompting applause from supporters.
However, economists and trade experts have warned that the tit-for-tat tariffs could raise consumer prices, disrupt global supply chains, and trigger long-term damage to global trade stability.
As part of its retaliation, China also added six more American companies to its “unreliable entity” list, further restricting their ability to operate in the Chinese market. Among them is aerospace and defense firm Sierra Nevada Corporation, along with several artificial intelligence firms.
“Inclusion on the unreliable entities list could lead to sanctions, financial penalties, and tighter scrutiny,” said Liu Wen, a trade analyst based in Shanghai.
Earlier this year, China added PVH Corporation—the parent company of fashion giants Calvin Klein and Tommy Hilfiger—to the same blacklist.
The list, managed by China’s Commerce Ministry, targets companies deemed to be a threat to national security or those involved in actions against Chinese interests.
The developments mark a sharp escalation in the US-China trade conflict, which has simmered for years but now appears to be entering a more volatile phase. Analysts say the path forward will depend on whether either side is willing to compromise—or if the conflict will continue to spiral with broader global implications.
“If this trajectory continues,” said Richard Morales, senior fellow at the Global Trade Institute, “we may be looking at a full-blown economic cold war.”
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