US-China Trade War Escalates: China Imposes 84% Import Tax on American Goods

The aggressive tariff tit-for-tat has reignited global concerns about economic instability and the impact on international trade and stock markets.

Chronology of Escalation

The latest escalation follows a series of tariff hikes from both sides:

• Initially, the U.S. imposed a 34% import duty on Chinese goods.

• China retaliated with a matching 34% tariff on American imports.

• In a major move, President Trump recently announced a 104% tariff on imports from China.

• In response, China imposed an 84% import duty on a range of American products, marking the sharpest escalation yet.

This series of retaliatory actions has intensified what experts are calling a "full-scale tariff war", with both economies bracing for long-term consequences.

Impact on Global Markets

The tariffs have already begun to ripple through global financial markets, with fluctuations in stock indices across Asia, Europe, and the Americas. Economists warn that prolonged trade hostilities between the world’s two largest economies could disrupt global supply chains, increase prices, and slow down economic growth worldwide.

China's Strong Response

The Chinese Ministry of Finance, in an official statement, condemned the U.S. action:

“The increased tariffs by the U.S. on China are a mistake. It seriously violates China’s legitimate rights and interests and seriously undermines the rules-based multilateral trading system.”

Beijing has further indicated that it may approach the World Trade Organization (WTO) to formally challenge the U.S. tariffs.

Global Implications

The escalating trade conflict is not just a bilateral issue—it may influence the trade policies of other countries as well. Economies that are deeply integrated with either the U.S. or China could face supply chain disruptions, increased tariffs on exports, and greater uncertainty in global markets.

As both superpowers dig in their heels, observers warn that without diplomatic intervention or negotiated settlements, the trade war may escalate into a broader economic confrontation, affecting sectors from technology to agriculture.