- China imposes 84% tariffs on U.S. goods in retaliation.
- The EU approves 25% tariffs on $23B worth of U.S. imports.
- Global markets tumble amid fears of a prolonged trade war.
The United States, under President Donald Trump, has implemented sweeping new tariffs on foreign imports. This includes a staggering 104% duty on Chinese goods and a baseline 10% tariff on nearly all trading partners.
In response, China swiftly retaliated with an 84% tariff on American goods. It also condemned the U.S. actions at the World Trade Organization.
Tariff Tensions Rise: U.S., China, and EU Dig In as Markets Reel
China’s latest move to increase tariffs to 84% marks a significant escalation in its ongoing trade dispute with the U.S. Following Trump’s unprecedented 104% import tax on Chinese goods, Beijing called the action “tax blackmail.” They stated it would not yield under pressure. The new levies are expected to impact key U.S. exports, including agricultural products and machinery.
The European Union, although traditionally an ally of the U.S., has also taken a firm stance. Voting unanimously, EU members approved a 25% tariff targeting $23 billion worth of American goods, ranging from motorcycles to bourbon. The European Commission stated the action could be reversed if the U.S. agrees to resume “fair and balanced” negotiations.
Markets reacted immediately. The S&P 500 dropped below 5,000 for the first time in nearly a year. Additionally, Asian indices such as Japan’s Nikkei and India’s Sensex saw sharp declines. With over $5.8 trillion in U.S. stock market value erased within a week, fears of a broader economic downturn are intensifying.
Adding fuel to the fire, U.S. Senator JD Vance’s remarks referring to Chinese workers as “peasants” sparked diplomatic outrage, worsening tensions with Beijing. As geopolitical strains rise, global leaders are urging de-escalation and dialogue to avoid long-term economic fallout.
With retaliation mounting and markets rattling, the world braces for deeper disruption. Major economies need to step back from the brink and pursue real negotiation.
“Trade wars are good, and easy to win.” – Donald Trump, 2018
