China raises retaliatory tariffs on U.S. goods to 84% amid trade war

BEIJING,— China said Wednesday it will raise tariffs on U.S. goods to 84% starting Thursday, as trade tensions between Washington and Beijing intensify. The announcement follows a move by President Donald Trump to increase tariffs on Chinese imports to 104%.

Beijing also introduced new countermeasures, including restrictions on American firms and an additional complaint filed at the World Trade Organization.

The Ministry of Commerce released a white paper outlining the country’s stance, emphasizing that China is prepared to respond further if the U.S. escalates its trade restrictions.

“If the U.S. insists on intensifying its economic and trade crackdown, China has the determination and the capacity to respond with necessary countermeasures and see the fight through,” the ministry stated.

It is unclear whether China will resume trade negotiations with the White House. No commitment was made on that front in the ministry’s statement.

Last Friday, Beijing had already imposed a 34% tariff on all goods coming from the U.S., along with export limits on rare earth elements and other strategic resources.

In turn, the U.S. responded with a further 50% tariff increase, with President Trump stating that talks with China were effectively over.

In a further move Wednesday, the Chinese government added 11 American companies to its “unreliable entities” list, banning them from receiving dual-use technology from Chinese suppliers.

Among the firms named were American Photonics and SYNEXXUS, both of which supply products to the U.S. military.

The Ministry of Foreign Affairs echoed the commerce ministry’s hardline tone. “If the United States truly seeks a solution through dialogue, it must demonstrate equality, mutual respect and benefit,” said ministry spokesperson Lin Jian.

According to the white paper, China accused the U.S. of violating commitments from the Phase 1 trade agreement, signed during Trump’s first term.

It pointed to U.S. legislation that would ban TikTok unless its Chinese parent company sells it, claiming this violates an agreement not to pressure either party into forced technology transfers.

Last week, Trump signed a temporary order allowing TikTok to operate for another 75 days. Negotiations to transfer ownership of the app to a U.S.-based entity have stalled, with ByteDance saying China will not approve any sale without broader talks on trade.

The Chinese government also argued that once services and local operations of U.S. firms in China are factored in, the trade relationship is close to balanced.

In 2023, Beijing recorded a $26.57 billion deficit in services trade with the U.S., primarily in areas like finance and consulting.

“History and facts show that raising tariffs has not solved the United States’ issues,” said the commerce ministry.

“Rather, it has led to market instability, heightened inflation, weakened domestic industry, and increased the risk of recession in the U.S. economy.”

(With files from AP)