On Wednesday, April 9, Trump announced that he is raising the tariffs on China to 125%. Earlier that day, China raised its tariff on all American imports to 84% in response to the US raising the total tariffs on Chinese exports to 104% on Monday. The new rates will be effective from Thursday, the Chinese state council said in a brief statement.
China also issued a white paper on Wednesday about its trade relations with the US. Published on the same day that Donald Trump’s so-called “reciprocal tariffs” regime went into effect, the white paper refutes his claims of a massive trade deficit with China. It claims that trade between both countries is rather “practically balanced.”
The so-called reciprocal tariffs announced by Trump last week targeted imports from over 60 countries, however most of these tariffs have now been paused for 90 days. The initial tariffs announced against Chinese exports was 54%. However, on Monday, Trump announced an additional 50% in tariffs, on top of the existing 54%, then on Wednesday he raised them again, taking the total tariffs to 125%.
Rising tensions as Trump escalates tariffs and China retaliates
Trump claimed the additional 50% tariff was a response to China announcing 34% tariffs on all US exports to the country, in retaliation for his reciprocal tariffs. He also warned that until China withdraws the 34% tariffs “all talks with China concerning their requested meetings with us will be terminated,” AP reported.
China has maintained that it will fight to the end in the tariff war, which has been the defining policy of Trump’s second presidency so far. Calling the imposition of the 104% reciprocal tariffs a “typical move of unilateralism, protectionism and economic bullying,” China’s Foreign Ministry Spokesperson Lin Jian said on Tuesday that his country will not give in to “economic blackmail” which is in complete violation of all the established international norms.
Jian repeated his country’s stand on the issue in a regular press conference on Wednesday. “We will not let anyone take away the Chinese people’s legitimate right to development. We will not tolerate any attempt to harm China’s sovereignty, security and development interests.”
China-US mutual trade stood at over USD 688 billion in 2024. China is the US’s third-largest trade partner – after Canada and Mexico – with exports to China amounting to 7% of all US exports in 2024. US exports to China mostly consist of agricultural products, energy, and automobiles.
China outlines its position on US economic relations
China’s State Council Information Office issued a white paper on Wednesday outlining the country’s position on major issues concerning its economic relations with the US. The document reiterates the Chinese position on the significance of free global trade for common prosperity and denies allegations of massive trade imbalances as claimed by Trump to justify his reciprocal tariff regime.
The white paper explains that claims of trade imbalance, made by Trump to justify his reciprocal tariff regime, were not true. It claims that if the sales of US companies in China are counted, the US actually holds a significant advantage in trade relations between the two countries.
Emphasis on dialogue and previous agreements
Since China believes that trade and tariff wars have no winners, it has simultaneously made efforts to resolve all “disputes through dialogue and consultation” engaging with the US at multiple rounds and signing the US-China Phase One Trade Agreement during Trump’s first term in 2020. China has not only taken strong measures to control the flow of fentanyl but also strengthened intellectual property protections.
However, the white paper points out that in complete violation of its obligations under the agreement and ignoring Chinese efforts to stabilize the trade relations, “the US side has continuously tightened export control, [and] escalated sanctions against Chinese enterprises.”
It states that “since the beginning of the trade friction between China and the US in 2018, the US side has imposed tariffs on Chinese exports worth more than 500 billion US dollars,” apart from attempts to contain and suppress China in other ways. These policies have left China with no option but to “take forceful countermeasures to defend its national interests.”
Warning of consequences for the US economy
Trump’s recent tariff war reveals the “isolationist and coercive nature of US conduct,” China claims. Such policies are “in conflict with the principles of the market economy, run counter to multilateralism, and will have serious repercussions for China-US economic and trade relations,” it underlines.
The white paper notes that Trump’s policies have disrupted international trade and severely disrupted the economic development of various countries. However, it will have the worst effects on the US economy itself, the document warns.
