China slaps 84% tariffs on US goods; Washington calls move a ‘losing game’

Tariff war between US China escalates

China on Wednesday announced an 84 percent levy on U.S. goods, effective Thursday, in response to President Donald Trump’s sweeping 104% tariffs on Chinese imports, which took effect just after midnight.

The European Union followed suit, approving its first set of retaliatory tariffs on U.S. goods, slated to begin on April 15. Meanwhile, Canada confirmed it will impose 25 percent tariffs on U.S.-made vehicles, targeting both non-compliant vehicles under the USMCA and non-North American content in compliant vehicles.

China added 12 US entities to export control list, and six firms to its unreliable list.

US Treasury Secretary Scott Bessent has responded to China's 84 percent tariffs. "I think it's unfortunate that the Chinese actually don't want to come and negotiate, because they are the worst offenders in the international trading system," Bessent said in an interview with Fox Business Network. "The US is trying to rebalance toward more manufacturing. China needs to rebalance towards more consumption," he added. “They have the most imbalanced economy in modern history. This escalation is a loser for them. They can raise tariffs — but so what?”

Global markets came under fresh pressure on as a wave of retaliatory tariffs from China, the European Union, and Canada rattled investors and deepened ongoing trade tensions. U.S. stocks opened in the red and continued to slide through the session, while European equities saw sharp declines across sectors.

In Europe, markets struggled to maintain the momentum from the previous session. The pan-European Stoxx 600 index slumped 3% by mid-afternoon in London, with all sectors in negative territory. Healthcare and oil & gas stocks were hit hardest, plunging 6% and 5%, respectively.

As the trade war widens, investor anxiety is mounting over its potential impact on global growth and corporate earnings. Traders are now watching for signs of diplomatic thaw—or further escalation—in what has become a high-stakes standoff between the world’s largest economies.

US President Donald Trump had imposed a slew of reciprocal tariffs on a number of nations on April 2, with China being charged 34 percent. Beijing promptly hit back, imposing 34 percent tariff on US imports.

The trade war intensified after Trump further hiked the tariff on Chinese imports to 104 percent. China has now again retaliated, hiking its tariffs on American imports to 84 percent.

Notably, China has urged US to engage in dialogue and resolve trade disputes. China's state-run agency Xinhua on April 9 released the White Paper published by the country's State Council Information Office to elaborate its stance on the ongoing trade tensions with US. China has taken "forceful" countermeasures to defend its national interests, but remains committed to resolving disputes through dialogue and consultation with US, the report quoted the White Paper as saying.

The latest move by China fuels the ongoing trade war between the two countries, that has rattled global markets. Indian benchmark indices too have strongly corrected as a result. As the statement from the Chinese government came after the Indian markets closed on April 9, investors will wait in anticipation when markets reopen on April 11. (Markets will remain closed on April 10).