1 week ago 9

Global tariff war: Key developments

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Beijing has slapped 84% duties on US goods in retaliation for Trump’s 104% levies on Chinese products

China announced on Wednesday that it will raise tariffs on US goods to 84%, up from the previous 34%, amid a deepening trade war between the world’s two largest economies that analysts warn could spark a global recession.

Beijing’s move came a day after US President Donald Trump declared a sweeping 104% tariff on all Chinese imports – far higher than the 34% hike he had initially proposed last week. On April 2, Trump imposed a baseline 10% tariff on all imports and introduced “reciprocal” duties ranging from 11% to 50% on roughly 200 countries he accused of maintaining unfair trade practices.

While most US trade partners threatened retaliation but moved to negotiate, China swiftly responded with its own levies, prompting Trump to escalate further.

The growing standoff has fueled fears of a global trade war and economic downturn. Financial markets have already taken a hit, with major indexes across the US, Europe, and Asia suffering declines for four consecutive days.

09 April 2025
13:47 GMT
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13:40 GMT
The US stock market looks headed for a sharp drop at opening. Dow futures have dropped 410 points, or 1.1%, while S&P 500 futures have slid 0.7% and Nasdaq futures are down 0.2%.
13:30 GMT
EU member states have agreed to introduce “trade countermeasures” against the US tariffs on imports of steel and aluminium from the bloc, the European Commission has announced. The measures will include retaliatory tariffs of 10% to 25% on US imports and will come into effect on April 15, according to media reports.
13:29 GMT
The US has “violated” global trade rules with its recent tariff hikes, Russian Foreign Ministry spokeswoman Maria Zakharova said on Wednesday.
“The situation is all the more serious when it comes to the two largest global economies, one of which is the Chinese economy, our long-term largest foreign trade partner,” Zakharova said during a press briefing.
Russia opposes all unilateral trade restrictions, including “illegitimate sanctions” and other forms of unfair competition that undermine global trade, Zakharova said. Moscow will assess the potential impact of the measures and take steps to minimize any economic damage, she added.
12:35 GMT
“China never deliberately pursues a trade surplus,” the country’s State Council Information Office said in a white paper on China-US trade relations released on Wednesday.
According to the document, the US is China’s largest export destination and second-largest source of imports, accounting for 14.7% of Chinese exports and 6.3% of imports. China is the US’ third-largest export destination and second-largest import source, making up 7% of American exports and 13.8% of imports.
12:16 GMT
China filed a lawsuit with the World Trade Organization (WTO) on Tuesday over Washington’s latest tariff hike, the Commerce Ministry announced. Beijing has asked the WTO to intervene through its dispute settlement mechanism, over what it earlier called “economic bullying.”
12:16 GMT
China said it would hike its tariffs on all American goods to a total of 84%: an additional 50% tariff, due to take effect on Thursday, will come on top of the 34% duty imposed last week. The announcement, made by the Finance Ministry in Beijing on Wednesday, came after US President Donald Trump increased duties on all Chinese imports to a staggering 104% a day prior.