Trump's new "reciprocal" tariffs went into effect, making China the hardest-hit country with a total tariff now reaching at least 104%. Both nations have been engaged in a tit-for-tat tariff exchange, with China consistently opposing each new levy imposed by the US.
China’s State Council Tariff Commission criticized the US move, calling it a mistake and stating that it severely infringes on China's legitimate rights and harms the multilateral trading system. This response came after China repeatedly warned of its determination to “fight to the end” if the US continued its tariff imposition. Originally set to increase by 34%, Trump's tariffs were increased by an additional 50% after China refused to back down.
In response, China also imposed export controls on 12 American companies, restricting Chinese suppliers from providing dual-use items with both military and civilian applications. Moreover, six more US companies were added to China’s "unreliable entity list," which restricts them from trading or making new investments in China, and China filed a complaint with the World Trade Organization over the US tariffs.
US Treasury Secretary Scott Bessent dismissed China’s retaliatory actions, criticizing China for not negotiating a tariff deal and labeling it the "worst offender in the international trading system." He also pointed out that China’s exports to the US are significantly higher than the US exports to China, making China's tariff increases less impactful.
Despite the increased tensions, China’s government, state media, and public figures have expressed defiance while keeping open the possibility of negotiations. A Chinese Foreign Ministry spokesperson stressed the need for the US to demonstrate respect and equality to resolve the trade dispute through dialogue. China also released a white paper outlining how US protectionist measures have damaged bilateral relations, with a Commerce Ministry official affirming that China does not want a trade war but will respond firmly to any harm to its interests.
China is preparing for the impact on its export sector, which has been a key growth driver for its economy. Last year, trade between the US and China amounted to nearly half a trillion dollars. Despite ongoing economic challenges, including the property sector crisis and local government debt, China has been taking steps to boost domestic consumption in anticipation of the effects of US tariffs on its export-driven economy.
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