China announces 84% tariffs on US goods in showdown with Trump
In a statement, the Ministry of Commerce (MOFCOM) of the People's Republic of China said the new tariff rate will take effect on April 10. "If the United States insists on further tightening its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the bitter end," they said.
China unveiled retaliatory tariffs of 84% on U.S. imports on Wednesday, further fueling the trade war between the world's two largest economies.
The announcement means China has increased its planned tariff on US imports by another 50 percentage points from the initial amount scheduled to take effect on Thursday, matching the additional charge US President Donald Trump has already imposed on Chinese goods.
Trump's sweeping "reciprocal" tariffs went into effect Wednesday morning. China was hit hardest, with a tariff of at least 104% on all its products. The two countries have been locked in a tit-for-tat game on trade, with Beijing staunchly opposing every new tariff introduced by Washington.
"The US tariff escalation on China is one mistake after another, seriously infringing on China's legitimate rights and interests and seriously damaging the rules-based multilateral trading system," the State Council Tariff Commission said in a statement announcing the new tax.
In addition to the tax increase, the Ministry of Commerce (MOFCOM) of the People's Republic of China imposed export controls on 12 U.S. companies, prohibiting Chinese companies from supplying them with dual-use items that have both military and civilian applications. It also added six other US companies to its "untrustworthy entities list," prohibiting them from doing business or making new investments in China.
Meanwhile, China has also filed a complaint with the World Trade Organization (WTO) over the latest US tariffs, according to the Ministry of Commerce (MOFCOM) of the People's Republic of China.
TikTok, in the spotlight
So far, China has shown no interest in negotiations. "If the United States truly wants to resolve problems through dialogue and negotiation, it must adopt an attitude of equality, respect, and mutual benefit," said Lin Jian, spokesman for the People's Republic of China's Foreign Ministry, on Wednesday.
The document claims that the United States has failed to fulfill the promises it made in Phase 1 of the trade agreement signed during Trump's first term. For example, it claims that a US law that would ban TikTok unless it is sold by its Chinese parent company violates the promise that neither side would "pressure the other to transfer technology to its own citizens."
Trump signed an order to keep TikTok running for 75 more days last week, following the suspension of a potential deal to sell the app to US owners. Representatives from ByteDance, TikTok's parent company, called the White House to indicate that China would not approve the deal until trade and tariff negotiations could begin.
Trump's tariffs were designed to reduce trade deficits with foreign countries, but they were calculated solely based on trade in physical, tangible goods. "History and facts show that raising US tariffs will not solve its own problems," the Ministry of Commerce (MOFCOM) of the People's Republic of China stated. "On the contrary, it will cause sharp fluctuations in financial markets, increase inflationary pressure in the United States, weaken the US industrial base, and increase the risk of an economic recession there, which will ultimately only be counterproductive."