Beijing hits back hard as trade war with Trump escalates—new tariffs to impact U.S. exports from April 12.
China announced a massive 125% tariff on all U.S. goods, effective April 12, in direct retaliation to President Trump’s latest tariff barrage.
Tmove comes just 48 hours after Trump raised tariffs on Chinese imports to 125%, with the total U.S. tariff rate now exceeding 145% when including fentanyl-linked levies. China’s State Council called the move “a necessary countermeasure to defend China’s core interests and multilateral trade rules.”
US exports to China totaled $151 billion in 2024, now facing devastating losses across agriculture, tech, and energy.
What’s Targeted?
- Soybeans, corn, wheat, beef, LNG, aircraft parts, and semiconductors are among the sectors most exposed.
- Analysts warn of “multi-billion-dollar shocks” for U.S. farmers and manufacturers already reeling from inflation and supply chain disruptions.
China’s Message
- China’s Foreign Ministry: “We will never accept arrogant and bullying behavior.”
- Officials stress that Beijing tried diplomacy, but “Trump left us no choice.”
- A new tariff adjustment mechanism will allow China to escalate or relax duties “based on U.S. conduct.”
Market Fallout
- Dow futures fell over 800 points in early trading.
- U.S. exporters plunged: Caterpillar (-6.2%), Boeing (-4.8%), Archer-Daniels-Midland (-7.9%).
- Analysts expect further volatility ahead of key trade talks in Geneva next week.
The world’s two largest economies are locked in the deepest trade rift since the Cold War. With 145%+ tariffs from Washington and 125% from Beijing, the price of escalation may soon hit consumers and markets alike. Buckle up—the trade war just turned global.
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