Tensions between the United States and China escalated dramatically this week after China announced it would impose sweeping 84% tariffs on all US goods starting Thursday. The announcement, made by China’s Ministry of Finance, comes as a direct response to the United States raising its own tariffs on Chinese goods to a staggering 104%. China’s new tariffs represent a steep increase from the 34% rate it previously announced.
The Chinese government also announced a tightening of trade restrictions on US companies, adding 12 American firms to its export control list and another six to the “unreliable entity” list. These measures reflect Beijing’s intensifying retaliation to what it views as escalating economic aggression from Washington.
The move follows US President Donald Trump’s recent tariff hike that sent shockwaves through global markets. The Trump administration’s decision to impose a 104% tariff on Chinese imports took effect Wednesday, pushing the ongoing trade dispute to a new high. The White House’s latest policy not only impacts Chinese goods but has also caused tariffs on products from the European Union, Japan, and Vietnam to climb sharply as well.
Financial markets reacted swiftly. After a brief pause on Tuesday, stock exchanges plunged into turmoil again by midweek. Japan’s Nikkei index tumbled nearly four percent by the close of Wednesday’s session. Major European markets in Paris, Frankfurt, and London also suffered midday losses of around three percent as investors processed the scale and impact of the global tariff battle.
In a formal statement, China accused the United States of engaging in unilateral economic aggression. On Wednesday, Beijing issued a detailed White Paper outlining its stance on the ongoing trade dispute. Titled *“China’s Position on Some Issues Concerning China-US Economic and Trade Relations,”* the document criticized the United States for imposing tariffs on more than $500 billion worth of Chinese exports since 2018. It called the American approach a dangerous blend of “unilateralism and protectionism” that threatens global trade cooperation.
According to the White Paper, trade tensions have already “seriously disrupted” normal economic and trade relations between the two countries. The Chinese State Council Information Office emphasized that the document was intended to clarify the facts and present China’s position, while also reaffirming Beijing’s readiness to defend its interests in the face of escalating US tariffs.
The timing of China’s retaliatory move follows the White House’s Tuesday evening declaration of the 104% tariff implementation, a move that analysts say could trigger long-term damage to global trade stability. Economists warn that the intensifying tariff exchange is likely to strain supply chains, raise consumer prices, and slow global economic growth.
Meanwhile, Russia weighed in on the situation, warning of broader consequences to international trade norms. Speaking on Wednesday, Russian Foreign Ministry spokesperson Maria Zakharova condemned the Trump administration’s tariff strategy, calling it a violation of core World Trade Organization (WTO) principles. Zakharova argued that Washington’s approach reflected a growing disregard for established international trade laws and institutions.
“The White House’s latest decision blatantly contradicts WTO rules and suggests that the United States no longer sees itself as bound by the global trade framework,” she said.
With both China and the US now locked into an escalating tariff war and other global powers expressing concern, the world economy faces a period of heightened uncertainty. As retaliatory measures take effect, markets and governments alike brace for the full impact of one of the most intense trade confrontations in recent history.
