By Toks David
On April 9, US-China trade tensions surged as President Trump slapped a 125% tariff on Chinese imports, hours after China raised its tariffs on US goods to 84%.
Building on an earlier 104% US levy, the move aims to pressure Beijing on trade imbalances and fentanyl trafficking, while China’s retaliation signals defiance amid risks of economic fallout.
China’s Commerce Ministry called the US tariffs “blackmail,” vowing to fight back while urging dialogue. The 84% Chinese tariffs, effective midnight April 9, follow years of trade friction, with Beijing adapting to counter Trump’s aggressive policies, now in his second term, as both sides brace for disrupted supply chains and higher prices.
The escalation stems from Trump’s strategy to use tariffs as leverage, intensified by China’s refusal to yield. While a 10% tariff hike applies to Canada and Mexico, a 90-day pause covers most other nations, leaving China as the main target. Global markets, already rattled with a 0.9% Dow drop on April 7, face uncertainty as costs mount.
American consumers may see price spikes for goods like electronics, while Chinese exporters could pivot to other markets. US lawmakers question whether Trump’s gamble will deliver, with voters potentially bearing the cost. Trump hinted at a possible deal on Truth Social, but China’s stance remains firm, clouding prospects for resolution.
The 125% tariff—the highest yet—sets a tense stage, with no clear winner in sight. As both nations dig in, the global economy hangs in the balance, facing a potential reshaping of trade networks that could last years.