Beijing responded to the increase in the US tariff rate on Chinese goods to 104% with a similar move.

As US President Donald Trump’s new tariff rate went into effect today, the Chinese Ministry of Finance issued a statement regarding the matter. The Ministry announced a decision for further retaliation by imposing an additional tariff on US goods. The statement revealed that the additional tariff rate on US goods would be 84%. In a previous announcement from China, this rate was stated as 34%. The Ministry stated that the additional tariff on US goods would be effective as of April 10. In a separate statement to the World Trade Organization (WTO), China emphasized that the US’s application of tariffs against Beijing would “threaten global trade further.” China’s WTO mission indicated in a statement sent to the WTO today, as reported by Reuters, that the situation was “dangerously escalating.” The mission pointed out that China was also one of the affected parties, expressing Beijing’s “great concern” and firm opposition to this “reckless move.”

INITIAL REACTION FROM US TREASURY SECRETARY: “SO WHAT?”

China’s retaliatory move did not go unnoticed. US Treasury Secretary Scott Bessent commented in an interview with Fox Business that China’s 84% retaliatory tariff was unfortunate.

Bessent stated that China escalating the tension was “a loss” for them, saying, “They can raise the tariffs, but so what? Taking a great step with the Chinese would be to accept the predecessors of fentanyl. China should not try to devalue its way out of this situation. China should come to the table.”

When asked about removing Chinese stocks from US markets, Bessent responded, “Everything is on the table. This will be Trump’s decision.” The US Secretary added that they would resolve the debt ceiling through compromise.

Bessent indicated that deregulation should allow banks to hold more debt securities, emphasizing that the US has a “strong dollar policy.”

US IMPOSES 104% TARIFF ON CHINA
The US’s tariff rate on China has increased to 104% as of today. The White House had announced that if China did not remove retaliatory tariffs within the allotted time, a 104% tariff rate would be applied starting from April 9. China had stated that it would impose a corresponding 34% tariff rate against the US. Trump had threatened to impose an additional 50% tariff if China did not refrain from this retaliation. Chinese Premier Li Qiang had stated that they had sufficient means to deal with US tariffs. Qiang expressed optimism about growth numbers for 2025 and emphasized that China upholds international trade rules.

TRUMP: “WE ARE MAKING $2 BILLION”
During a White House program attended by coal miners, Trump had stated, “You often hear about tariffs, right? Well, thanks to those tariffs, we’re making nearly 2 billion dollars almost every day. Yes, 2 billion per day, and our business is doing very well, really well.”