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Well, that backfired. After President Donald Trump slapped a punishing 104% tariff on Chinese goods, Beijing hit back, announcing on Wednesday that it would raise its own tariffs on U.S. goods from 34% to 84%.
In a pointed commerce ministry policy paper, China argued that Trump’s tit-for-tat trade war is counterproductive—and China is ready to fight fire with fire.
“The Chinese government has the firm will and abundant means to take the necessary countermeasures and fight to the end. History and facts have proven that the United States’ increase in tariffs will not solve its own problems. Instead, it will trigger sharp fluctuations in financial markets, push up U.S. inflation pressure, weaken the U.S. industrial base, and increase the risk of recession—which will ultimately backfire on itself,” the paper said.
China isn’t wrong. With the U.S. economy already spiraling and global markets tumbling, Trump’s escalation couldn’t come at a worse time. And now, the world’s two largest economies are locked in a trade war triggered by Trump’s pettiness.
According to the Office of the U.S. Trade Representative, the United States exported $143.5 billion in goods to China and imported $438.9 billion in 2024. The fallout from Trump’s tariff war will hit industries across the board and land squarely on the backs of everyday consumers.
The Trump administration rolled out its sweeping tariffs last week and warned other countries not to retaliate. But China, rightly, isn’t interested in being bullied.
On top of an existing 20% tariff imposed earlier this year, Trump hiked tariffs on Chinese goods by another 34% during his ill-fated “Liberation Day.” China matched it, so Trump doubled down—literally—with a jaw-dropping 50% increase, bringing the total tax on Chinese imports to 104%. China countered with an 84% tariff on U.S. goods.
Treasury Secretary Scott Bessent called the retaliation “unfortunate.”
“I think it’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system,” he told Fox Business.
China’s commerce ministry pushed back on that claim in its policy paper, asserting that the current economic exchange is “roughly balanced.” But even if it weren’t, there’s little evidence that negotiating with Trump leads anywhere—just ask Vietnam or even Trump himself, as his tough-guy trade strategy continues to tank the economy and alienate voters.
Negotiating with a man who is obsessed with appearing like a winner is no easy feat.
On Monday, White House trade adviser Peter Navarro dismissed Vietnam’s offer to lower tariffs on U.S. imports to 0%, saying the move “means nothing” after Trump slapped the country with a 46% tariff. He said that other countries dropping their tariffs is merely a starting point—suggesting that the White House feels entitled to demand anything while giving little or nothing in return.
“They all cheat us in a different way,” Navarro said of U.S. trading partners—not exactly the tone of a country trying to maintain strong global alliances.
Yet the White House keeps insisting that everything is fine, and Trump is naively convinced tariffs won’t come back to bite Republicans in the 2026 midterms.
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” he wrote on Truth Social.
Meanwhile, Americans are just wondering how they’re going to afford groceries.
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