Will This Trade War Ever End? Trump Says No—Trouble For China

US-China Trade Fight Heats Up With New 104% Tariff War

The White House said on Monday that US taxes on Chinese goods will rise to 104% Tariff on Wednesday, April 9, 2025. This will make the trade fight between the US and China worse.  

President Donald Trump has recently put strong tariffs on Chinese goods, which are now in place. Goldman Sachs says these tariffs could hurt the economy and slow its growth by 2.4%. It is the second-biggest trading partner of the US and sold $438.9 billion worth of products to the US in 2024, including electronics, clothing, and home goods. The 104% tax will seriously hurt China’s ability to sell products. 

Chinese factories may struggle to survive as their costs go up and profits disappear. Many industries, like electronics, clothing, and machinery, might fail. The economy will suffer, with less growth and more people losing jobs, making it hard for the country to compete in global trade.

“The Chinese want to make a deal, they just don’t know how to do it,” White House press secretary Karoline Leavitt said on Tuesday.

From 34% to 104% Trade War Escalates

It all Began On April 2, Trump added a 34% tax on imports, calling it "Liberation Day" to show a step towards US independence from China's economy. This was on top of an earlier 20% tariff for China's supposed role in the US opioid crisis. 

China responded with its own 34% tariffs on April 4. Trump warned that if they did not remove these tariffs, the US would add another 50% tariff starting April 9. Trump posted on Truth Social that if China did not take back its 34%, the US would add a 50% tariff on April 9. Now, that extra 50% is in place, making the total US tariffs on Chinese imports 104%.

The tariff hike is part of a broader strategy by President Donald Trump to counter what he calls “long-term trading abuses” by China.

CHINA SAYS "WILL FIGHT TO THE END"  

The country reacted to President Trump's demand for them to back down on their trade actions. They called it "blackmail." China's commerce ministry said that the US's threat to raise taxes is a big mistake and shows how the US tries to pressure others. They added that if the US keeps pushing, they will fight back strongly. The situation is uncertain as the two biggest economies are in a fierce trade war, and neither side is ready to give in. Global markets have already seen their biggest drop since the COVID-19 pandemic.

The Chinese economy is a sea, not a pond." "Storms can overturn a pond, but never a sea," President Xi Jinping said.

China might respond to Trump’s tax policy by boosting its economy with tax cuts and support for businesses. They could also look to trade more with Asia and Europe instead of relying on the US. While they could take action against US companies, this could lead to more problems. Surprisingly, they may decide not to lower their currency value to keep pressure on the US.

After US Tariff Hike, Global Markets Drop as US-China Trade War Heats Up

President Trump’s tariffs on many countries began on Wednesday, hitting Chinese goods hard with a 104% tax. This has raised fears of a recession and caused stock markets to drop sharply. 

Trump's new tariffs have started, affecting many countries and causing a major shake-up in global trade, the biggest since the 1930s.These tariffs include a large amount of tax on imports from China and other taxes on both friends and rivals of the US. Businesses and consumers are worried about rising prices. This move can send shockwaves through stock & crypto markets.

This recent step follows months of rising trade problems and could greatly affect both the U.S.and the world economy. Experts warn that we might see an economic slowdown as businesses deal with higher costs for goods and possible supply issues. As the situation changes, we still do not know the complete effects of the tariffs on both countries' economies.