The ongoing trade war between the United States and China has intensified significantly. On April 9, 2025, China announced a substantial increase in tariffs on U.S. imports, raising them to 84% in direct retaliation to President Donald Trump’s earlier escalation of tariffs on Chinese goods to 104%.
This latest move by Beijing is a direct response to the U.S. administration’s aggressive trade policies. The Chinese Ministry of Commerce emphasized its readiness to implement further countermeasures to safeguard national interests. Additionally, China has added several U.S. companies to its export control and unreliable entities lists, effectively restricting their participation in China-related trade and investment activities.
The escalation has had immediate repercussions on global financial markets. Major indices in the U.S., UK, and Europe experienced sharp declines, with Germany’s DAX dropping 3.8% and the Dow Jones falling 0.7%. Asian markets also suffered, though China’s indices saw some gains due to domestic interventions. Oil prices declined for a fifth consecutive day, reaching lows not seen since February 2021, amid fears of reduced global demand.
President Trump has defended his protectionist strategy, urging companies to relocate manufacturing to the U.S., highlighting minimal regulatory delays and zero domestic tariffs. The administration has also initiated trade talks with allies including Japan, South Korea, and Italy. Critics, however, warn of rising inflation and long-term economic harm.
China has accused the U.S. of breaking prior agreements and escalating economic pressure. The European Union has expressed concern, urging de-escalation. Analy
sts foresee a prolonged standoff between the economic giants, as there appears to be little momentum toward a quick resolution.
