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By Shane Croucher
Senior Editor
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China said it will hike its tariff on U.S. imports to 84 percent after President Donald Trump increased tariffs again on Chinese goods, in a trade war that continues to escalate.
Why it Matters
Global markets have suffered sharp losses over fears of a painful and widespread economic fallout from the trade war, which stretches beyond the U.S. and China.
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Trump hit dozens of America's trading partners with tariffs in April, and many have retaliated in kind.
In the U.S., there are fears of a recession and higher prices, which pose political problems for Trump and the Republicans heading into the 2026 midterms next year.
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What to Know
China's latest tariff is an additional 50 percent to the previous rate of 34 percent. It follows Trump's raising of the tariff on Chinese goods to 104 percent as of Wednesday.
"The U.S. escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China's legitimate rights and interests and seriously undermines the rules-based multilateral trading system," China's finance ministry said in a statement.
The Chinese Commerce Ministry said separately that it was adding 12 more American companies to its export controls list.
Trump had warned China on Monday to withdraw its retaliatory tariff of 34 percent by Tuesday or face an additional 50 percent U.S. tariff on Wednesday.
The deadline passed and the new U.S. tariff rate for Chinese imports came into effect.
He also said in a post on Truth Social that "all talks with China concerning their requested meetings with us will be terminated".
The trade war will hit export-reliant China especially hard. It is already struggling to manage an economic slowdown. American companies who have based their business models on manufacturing in the country could also face severe difficulties.
What People Are Saying
President Trump said in a speech to the NRCC on Tuesday night: "After all of the abuses they've perpetrated, China is attempting to impose additional unjustified tariffs...That's why additional tariffs on Chinese goods are in place, effective midnight tonight, at 104 percent.
"Until they make a deal with us, that's what it's going to be. I think they'll make a deal with us at some point. China will. They want to make a deal, they really do...they just don't know how to get it started."
Chinese Foreign Ministry spokesperson Lin Jian said on Tuesday: "I would like to stress once again that there are no winners in trade wars and tariff wars, and there is no way out for protectionism... China will take necessary measures to resolutely safeguard its legitimate and lawful rights and interests."
What's Next
There are no signs that the U.S.-China trade dispute will ease soon. Both sides have signaled a hardline stance.
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