Trump Tariffs Spark China Retaliation With Massive 84% Tariffs On US Goods

The global trade war escalated sharply on Wednesday as China announced steep new tariffs on American imports, raising duties to a staggering 84%, just hours after President Donald Trump’s 104% tariffs on Chinese goods took effect.

China Hits Back Hard After US Tariff Hike

In a decisive response to the United States’ latest protectionist measures, China’s Ministry of Finance confirmed it would raise tariffs on US goods from 34% to 84%, effective Thursday at 12:01 pm Beijing time.

“The tariff escalation against China by the United States simply piles mistakes on top of mistakes and severely infringes on China’s legitimate rights and interests,” said the ministry in a strongly worded statement.

Beijing also accused Washington of undermining the global trade order, calling the US action a violation of multilateral trade rules.

Beijing Blacklists American AI Firms Over Taiwan Ties

In addition to the sweeping new tariffs, Beijing’s Ministry of Commerce announced the blacklisting of six American artificial intelligence companies, including Shield AI Inc. and Sierra Nevada Corp.

The move comes amid rising tensions over Taiwan, with China accusing the firms of either selling arms to Taiwan or collaborating on military technology with the self-governed island.

“These companies have seriously harmed China’s national security and sovereignty by engaging in arms sales and military cooperation with Taiwan,” the commerce ministry said in its statement.

Global Markets Brace for Fallout

The latest tit-for-tat tariff exchange between the world’s two largest economies threatens to destabilise already fragile global markets. Analysts warn that rising costs, disrupted supply chains, and higher inflation could soon ripple through economies across the globe — especially emerging markets like South Africa.

Washington has yet to respond formally to Beijing’s retaliatory move, but trade experts expect tensions to intensify in the coming days.

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