China has imposed an 84% tariff on U.S. imports, effective immediately, in retaliation for President Donald Trump’s recent 104% tariff on Chinese goods. The move marks a significant escalation in the ongoing trade war between the world’s two largest economies. The new Chinese tariff replaces a previous 34% duty, demonstrating Beijing’s refusal to back down from the confrontation.
The announcement came as President Trump urged American companies to relocate their operations from China to the U.S., tweeting “Don’t wait, do it now!” Meanwhile, the European Union has approved retaliatory tariffs on $22.7 billion worth of U.S. goods, to be implemented in three phases starting April 15. The EU’s measured response reflects the challenges of coordinating trade policy across 27 member states.
Financial markets reacted nervously to the developments, with European stocks declining and U.S. markets opening mixed. In a worrying sign for investors, many began selling off long-term U.S. government bonds, traditionally considered among the safest investments. President Trump remained defiant, claiming affected nations were calling to negotiate and “kissing my ass” to reach deals.
The EU’s phased tariff plan will target 14.6 billion on May 15 and a final $3.8 billion tranche on December 1. European officials emphasized the measures could be suspended if Washington agrees to fair negotiations. The escalating trade conflict threatens to disrupt global supply chains and potentially trigger a broader economic slowdown.
