China Responds with Tariff Retaliation Against US: Economic & Diplomatic Implications Intensify

Massive Tariff Hike by China in Retaliation

In a sharp escalation of the ongoing trade conflict, China has announced an increase in tariffs on US goods—from 34% to a steep 84%—starting April 10. The move comes directly in response to US President Donald Trump’s imposition of a 104% tariff on Chinese imports, declared during the US "Liberation Day" address.

The tariff war between the two largest economies has been intensifying. President Trump warned that unless China rolled back its 34% tariff within 24 hours, the US would impose additional duties and halt all ongoing talks. China’s decision to raise tariffs by 50 points—mirroring the US move—signals a strong and calculated response.

White House’s Aggressive Stand

White House Press Secretary Karoline Leavitt defended the 104% tariff, asserting that retaliation was expected and that the US would “punch back harder.” She emphasized that the Trump administration is no longer willing to tolerate trade practices that, in its view, have harmed American jobs and industry.

“There will be tailor-made trade deals with every nation that reaches out,” she added, highlighting the administration’s new protectionist stance. According to Leavitt, nearly 70 countries have already begun reaching out for renegotiations under the new trade framework.

Wider Strategic Goals Behind Tariffs

The US’s tariff hike isn't limited to China. The new duties span a long list of countries:

• China: 104%

• Vietnam: 46%

• Taiwan: 32%

• Japan: 24%

• India: 26%

• European Union: 20%

• UK: 10%

• Bangladesh: 37%

• Pakistan: 29%

• Sri Lanka: 44%

• Israel: 17%

The US administration argues that these measures are part of a broader mission to eliminate both monetary and non-monetary trade barriers.

India-China Relations Amid Trade War

Amidst this geopolitical tension, India is attempting to recalibrate its diplomatic ties with China. External Affairs Minister Dr. S. Jaishankar, speaking at the CNN-News18 Rising Bharat Summit 2025, affirmed that India-China relations are now improving following years of border tension and post-COVID disruption.

Jaishankar pointed to the resumption of key bilateral talks, discussion on direct flights, and the possibility of reopening the Kailash Mansarovar Yatra as positive signs. He also cited the recent agreement on patrolling protocols in Depsang and Demchok regions along the Line of Actual Control (LAC), reached in October 2024.

Looking Ahead: Calm or Further Chaos?

While India maintains diplomatic balance, the economic implications of the US-China tariff war are far-reaching. Global markets have reacted with sharp sell-offs, and analysts predict further volatility as export-driven economies reassess their trade policies.

With both countries standing firm, this latest tariff escalation is likely to further fragment global supply chains, disrupt trade flows, and strain geopolitical relations across Asia and beyond.