Following Donald Trump’s imposition of a 104% tariff on Chinese goods entering the U.S., China has imposed an 84% tariff on U.S imports with effect from Thursday.
China is not backing down and the latest development is an increase from the 34% it already imposes on American products.
The 84% tariff will come into effect at 12:01 Beijing time on 10 April, 2025.
From tomorrow, they are adding 12 American companies to an export control list – a catalogue of items and products that may require an export licence to leave a country. They are also adding six American companies to the unreliable entity list, including AI companies.
China has already filed a complaint to the World Trade Organization, where it says the U.S. is violating international trade law.
In response to China’s reaction,Trump wrote, “Don’t wait, do it now!” urging businesses to move to the U.S..
In other areas, Trump has imposed higher taxes on imports into the U.S. from 60 nations that he considers the “worst offenders” in terms of trade.
Trump claims that affected nations are phoning and “kissing my ass” in an effort to engage in dialogue.
Markets tracker: Following China’s most recent tariff announcement, European markets continue to decline. In the meantime, long-term US government bonds, which are typically regarded as a “safe haven” asset, are being sold by investors.