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In a sharp escalation of the US-China trade war, China on Wednesday imposed retaliatory tariffs of up to 84% on American goods, responding to a sweeping tariff hike announced earlier in the day by US President Donald Trump. These new duties intensify tensions between the world’s two largest economies and mark a new phase in their ongoing economic standoff.
Trump’s “reciprocal” tariffs, which now raise the total levy on Chinese goods to at least 104%, were met with immediate backlash. The State Council Tariff Commission of China condemned the move, calling it a “mistake upon mistake” that violates China’s rights and damages the global trading system.
In parallel developments, the European Union announced it would implement retaliatory duties on US imports from next Tuesday, following the Biden administration’s recent tariff hike on steel and aluminum. “These countermeasures can be suspended if a fair, negotiated outcome is reached,” the European Commission said.
The US-China confrontation also widened beyond tariffs. China’s Ministry of Commerce placed export controls on 12 US firms, restricting dual-use items, and added six companies to its “unreliable entity list.” A formal complaint was filed with the World Trade Organization over the latest US actions.
Despite warnings, President Trump escalated tariffs by an additional 50 percentage points after China refused to back down. Financial markets reacted nervously, with global indices swinging amid rising uncertainty.
Chinese officials reiterated they are open to dialogue but warned they would not tolerate infringement on national interests. A newly released white paper by China blamed the US for adopting “unilateral and protectionist measures” and vowed firm retaliation if further escalations occur.
With bilateral trade valued at over $500 billion last year, the prolonged dispute poses significant risks to global markets and economic stability.
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