China slaps 84% tariff on U.S. goods; trade war between superpowers intensifies with no off-ramp

The trade war between the U.S. and China escalated Wednesday as Beijing slapped a tariff of 84% on American goods.

The Office of the Tariff Commission of the State Council in Beijing said it was increasing the tariff rate from 34% to 84%, starting Thursday, in response to Mr. Trump’s decision to increase that tariff rate on Chinese goods from 54% to 104%.

“The U.S.’s practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests, seriously damages the rules-based multilateral trading system, and seriously impacts the stability of the global economic order,” the tariff commission said. “It is a typical example of unilateralism, protectionism, and economic bullying.”

The tit-for-tat between two global superpowers stems from Mr. Trump’s “Liberation Day” plan to impose a blanket 10% on all imports and heftier levies on countries like China, which exports far more products to the U.S. than it buys.

The U.S. exported $143.5 billion worth of goods to China in 2024 while importing Chinese goods worth $438.9 billion, a trade deficit of $295.4 billion, according to the Office of the U.S. Trade Representative.

Mr. Trump wants to correct those trade imbalances through tariffs, saying they will raise revenue and bring jobs back to America.

Wall Street investors and some of Mr. Trump’s GOP allies are concerned that his plan will spark a global trade war that increases prices, destabilizes the economy and leads to a recession.

Mr. Trump has shown no sign of backing down, saying tariffs are a powerful negotiating tool and dozens of countries are looking to drop trade barriers through bilateral deals.

However, Chinese President Xi Jinping has built a reputation as a strongman who won’t back down to the U.S., leaving the U.S.-China trade spat with no clear off-ramp.

China makes many products that Americans buy, so the toy industry and others say consumers may have to confront higher prices.

Mr. Trump said Tuesday that China “wants to make a deal, badly, but they don’t know how to get it started.”