Escalating trade war: U.S. and China reach unprecedented tariff heights

The United States and China have further escalated the trade war, taking the dispute to unprecedented levels.

United States and China have further escalated the trade war, taking the dispute to unprecedented levels. The two largest economies in the world are now at the highest point of tariffs seen so far. Shortly after U.S. President Donald Trump threatened to nearly double the tariffs on China, Beijing responded by stating that it would fight until the end. The result: Trump is set to impose a staggering 104% tariff on all Chinese imports, according to the White House. This adds to the tariffs China already had in place before Trump’s second term.

As part of Trump’s reciprocal tariff package, China was set to face a 34% tariff increase on Wednesday, April 8. However, the president added another 50% after Beijing refused to back down from its promise to impose 34% tariffs on U.S. products before noon on Tuesday, followed by an additional 84% in tariffs, resulting in the final figure of 104%.

U.S.-China trade war

This trade war has been developing for years, but the situation has worsened in recent months due to Donald Trump’s policies. After announcing a 10% tariff, which later increased, trade tensions intensified during March and April 2025, due to a series of tariff measures implemented by both nations. Below is a timeline of the key events:

On March 4, the U.S. imposed an additional 10% tariff on Chinese imports. In response, China imposed tariffs of up to 15% on U.S. agricultural products. Later, on March 27, Trump threatened to increase tariffs on China by 50% if China did not remove its 34% tariffs.

On March 29, China announced retaliatory measures, including restrictions on U.S. tech and defense companies, as well as additional tariffs on agricultural and manufactured products. During “Liberation Day,” April 2, the U.S. presented a list of countries whose products would be subject to new tariffs, with China being one of the hardest hit, facing a total tariff of 54%.

In response, on April 3, China imposed a 34% tariff on all U.S. products. A spokesman for China’s Ministry of Commerce condemned the U.S. tariffs, claiming they violated World Trade Organization (WTO) rules and filed a lawsuit with the organization. If Trump follows through on his threat, tariffs on Chinese products could reach 104% as of the morning of April 9.

These actions reflect an escalation in the trade war between the U.S. and China, with significant implications for the global economy and specific sectors such as sports.

Impact of tariffs on the Chinese and global economy

The tariffs imposed by the U.S. have a significant impact on Chinese manufacturers, given the importance of the U.S. market for their exports. China’s main exports to the U.S. include electrical products, machinery, computers, furniture, toys, vehicles, and equipment, while U.S. exports to China include oilseeds, grains, aircraft, machinery, and pharmaceuticals.

The uncertainty caused by the tariffs has led to severe turbulence in global stock markets. Since President Trump announced the tariffs, stock markets have experienced significant declines. In the U.S., stock indexes fell at the start of Monday, although they later recovered some of the losses. Additionally, according to the Office of the U.S. Trade Representative, this move could leave a trade deficit of $295 billion, according to BBC reports.

In Europe, markets also registered declines, with the FTSE 100 in London falling by more than 4%. Meanwhile, stock indexes in Asia experienced plummets, with the Hang Seng index in Hong Kong being the hardest hit, falling more than 13%, its largest drop since 1997. However, most Asian markets saw partial recovery on Tuesday.

What’s next for other countries?

During “Liberation Day,” President Donald Trump announced tariffs on dozens of countries, including the European Union. These countries now face a midnight deadline for new tariffs, which range from 11% to 50%.

Despite several discussions with world leaders to negotiate lower tariff rates, it has been reported that Trump is unwilling to delay his plans, according to CNN. However, the president has instructed his trade team to seek deals with countries willing to negotiate. Although the results are uncertain, all countries facing tariff threats must be prepared to face the measures.