China announced Wednesday that it will raise tariffs on American goods to 84% starting Thursday, escalating its trade war with the U.S. and vowing to “fight to the end” in response to new economic measures imposed by President Donald Trump.
The move comes days after Trump raised total tariffs on Chinese imports to 104%, including a 50% increase following what he called “Liberation Day” tariffs. In retaliation, China also imposed a 34% tariff on all U.S. imports, announced new export controls on rare earth minerals, and blacklisted 11 U.S. companies—such as American Photonics and SYNEXXUS—from buying dual-use goods from Chinese firms. These companies have known ties to the U.S. military.
China’s Ministry of Commerce clarified that further retaliation would follow if the U.S. continues to escalate restrictions. The ministry said in a statement introducing a new white paper on U.S.-China trade relations that “China has the firm will and abundant means to take necessary countermeasures and fight to the end.”
In addition to the new tariffs and export restrictions, China launched an additional lawsuit against the United States at the World Trade Organization, accusing Washington of breaking commitments under the phase 1 trade deal signed during Trump’s first term.
So far, China has not intended to return to the negotiating table.
The white paper also criticizes recent U.S. legislation that threatens to ban TikTok unless it’s sold by its Chinese parent company, ByteDance, calling it a violation of past promises not to force technology transfers. Last week, Trump signed an order allowing TikTok to operate for another 75 days as negotiations stall.
However, Beijing further argued that economic exchange between the two nations is largely balanced when factoring in trade in services and profits from U.S. company operations within China. The paper cited a $26.57 billion Chinese trade deficit in services with the U.S. in 2023 in sectors like insurance, banking, and accounting—areas not considered in Trump’s goods-focused tariff strategy.
Ultimately, the ministry’s statement emphasized that historical evidence indicates that raising tariffs in the United States will not address its challenges. Rather, it will lead to a greater risk of an economic downturn, ultimately causing more harm to the country.
