China's Bold Move in Trade War

In a significant escalation of the ongoing trade war, China has announced an increase in retaliatory tariffs on the US from 34% to a staggering 84%, effective this Thursday. This move comes in response to the US's imposition of massive 104% duties on Chinese goods.

Cargo containers line a shipping terminal at the Port of Oakland on Thursday, April 3, 2025, in Oakland, Calif. Photo by AP

Global Trade Order Shaken

Trump's "reciprocal" tariffs have not only targeted China but also dozens of other countries, shaking the global trading order that has been in place for decades. The European Union is preparing its own retaliatory measures, signaling a widening rift in international trade relations.

Market Turmoil and Economic Fears

The tariffs have raised fears of a global recession, wiping trillions of dollars off the market value of major firms. The S&P 500 has suffered its deepest loss since the 1950s, nearing a bear market. U.S. Treasuries and the dollar have also been caught in the turmoil, with investors fleeing even the safest assets.

China's Stance and Future Actions

China has labeled its trade surplus with the United States as an inevitability and warned of its "determination and means" to continue the fight if provoked further. The country has also expressed grave concern to the World Trade Organization, stating that the US's actions threaten to destabilize global trade further.

Looking Ahead

As the trade war escalates, the world watches closely to see how these measures will affect the global economy in the long term. With the European Union joining China and Canada in pushing back against US tariffs, the stage is set for a prolonged conflict that could reshape international trade dynamics.