Effectively, that backfired. After President Donald Trump slapped a punishing 104% tariff on Chinese language items, Beijing hit again, asserting on Wednesday that it will elevate its personal tariffs on U.S. items from 34% to 84%.
In a pointed commerce ministry coverage paper, China argued that Trump’s tit-for-tat commerce conflict is counterproductive—and China is able to struggle fireplace with fireplace.
“The Chinese government has the firm will and abundant means to take the necessary countermeasures and fight to the end. History and facts have proven that the United States’ increase in tariffs will not solve its own problems. Instead, it will trigger sharp fluctuations in financial markets, push up U.S. inflation pressure, weaken the U.S. industrial base, and increase the risk of recession—which will ultimately backfire on itself,” the paper mentioned.
China isn’t fallacious. With the U.S. financial system already spiraling and international markets tumbling, Trump’s escalation couldn’t come at a worse time. And now, the world’s two largest economies are locked in a commerce conflict triggered by Trump’s pettiness.
In accordance with the Workplace of the U.S. Commerce Consultant, the US exported $143.5 billion in items to China and imported $438.9 billion in 2024. The fallout from Trump’s tariff conflict will hit industries throughout the board and land squarely on the backs of on a regular basis shoppers.
The Trump administration rolled out its sweeping tariffs final week and warned different international locations to not retaliate. However China, rightly, isn’t curious about being bullied.
On high of an current 20% tariff imposed earlier this 12 months, Trump hiked tariffs on Chinese language items by one other 34% throughout his ill-fated “Liberation Day.” China matched it, so Trump doubled down—actually—with a jaw-dropping 50% improve, bringing the overall tax on Chinese language imports to 104%. China countered with an 84% tariff on U.S. items.
Treasury Secretary Scott Bessent known as the retaliation “unfortunate.”
“I think it’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system,” he advised Fox Enterprise.
China’s commerce ministry pushed again on that declare in its coverage paper, asserting that the present financial change is “roughly balanced.” However even when it weren’t, there’s little proof that negotiating with Trump leads anyplace—simply ask Vietnam and even Trump himself, as his tough-guy commerce technique continues to tank the financial system and alienate voters.
Negotiating with a person who’s obsessive about showing like a winner is not any simple feat.
On Monday, White Home commerce adviser Peter Navarro dismissed Vietnam’s supply to decrease tariffs on U.S. imports to 0%, saying the transfer “means nothing” after Trump slapped the nation with a 46% tariff. He mentioned that different international locations dropping their tariffs is merely a place to begin—suggesting that the White Home feels entitled to demand something whereas giving little or nothing in return.
“They all cheat us in a different way,” Navarro mentioned of U.S. buying and selling companions—not precisely the tone of a rustic making an attempt to keep up robust international alliances.
But the White Home retains insisting that all the pieces is okay, and Trump is naively satisfied tariffs received’t come again to chew Republicans within the 2026 midterms.
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” he wrote on Fact Social.
In the meantime, People are simply questioning how they’re going to afford groceries.
