China has announced an 84% tariff on US imports, escalating tensions after Donald Trump imposed a 104% tariff on Chinese goods entering the United States. The new levy marks a sharp increase from the previous 34% tariff and is set to take effect on Thursday.
Reporting from Beijing, Stephen McDonell writes, “China is not backing down.”
In response to the growing trade pressure, Trump urged American companies to shift operations back to the US, writing on social media, “Don’t wait, do it now!”
The fallout isn’t limited to China. Tariffs on imports from 60 countries—labeled the “worst offenders” by Trump—have also come into force, sparking a flurry of diplomatic outreach. The former president claimed, “Impacted countries are calling up and kissing my ass” in efforts to strike new trade agreements.
Markets reacted sharply. European indexes dipped further following China’s announcement, while investors began offloading long-term US government bonds, a traditional safe haven during global uncertainty.
The UK has largely escaped the harshest measures, for now. It avoided inclusion on Trump’s blacklist and faces only a 10% “baseline” import duty—half the rate applied to the EU—alongside pre-existing 25% tariffs on steel, aluminium, and automotive imports.
Chancellor Rachel Reeves stated that Prime Minister Keir Starmer has been actively working toward a trade agreement with Washington since his visit in February. On Tuesday, Starmer emphasized diplomacy over retaliation, saying a negotiated outcome would better serve UK interests.
Culture Secretary Lisa Nandy declined to set a timeline for a deal but affirmed, “the government was working at pace.”