China strikes back with 84% to US 104% tariff, EU approves first counterpunch against US tariffs on steel, aluminium

New Delhi, Apr 9: China has announced a retaliatory tariff of 84% on American imports, up from the previous rate of 34%, following the implementation of a 104% tariff on Chinese goods by the United States earlier today. The new Chinese tariffs will take effect at 12:01 a.m. Beijing time on April 10. The escalation marks a significant deepening of the ongoing trade war between the world’s two largest economies. In addition to the tariff hikes, China will add 12 American companies to its export control list, and place six more, many in the AI sector, on its “unreliable entities” list, further tightening restrictions on bilateral trade. Beijing has also lodged a formal complaint with the World Trade Organization, accusing Washington of breaching international trade rules. The U.S., for its part, has extended steep tariffs to imports from 60 other countries identified as major trade violators. The broader protectionist stance has triggered global market concerns, with European indices slipping further after China’s announcement. Meanwhile, U.S. government bonds, traditionally seen as a safe haven, have seen increased sell-offs as investors assess the rising risk of recession.

As tensions intensify, the economic fallout is expected to be significant for both countries. While China exports far more to the U.S. than it imports, analysts warn that the tariffs are likely to hit American consumers and Chinese businesses hard in the near term.

The European Union has approved its first round of retaliatory measures against the United States in response to the 25% tariffs imposed by Washington on EU steel and aluminium exports. Following endorsement by member states earlier today, the European Commission announced it will begin collecting duties on selected U.S. imports starting April 15. While the Commission has yet to disclose the specific tariff rates or targeted goods, it emphasised that the measures are reversible. “The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” the Commission said in a statement, reiterating its preference for a negotiated solution. “These countermeasures can be suspended at any time, should the U.S. agree to a fair and balanced negotiated outcome.”