China fires back in Trump trade war

China retaliated against the Trump administration’s new tariffs on Wednesday with a steep tariff increase of its own, the Chinese Office of the Tariff Commission of the State Council announced.

The Trump administration announced Tuesday that U.S. tariffs on Chinese goods will increase to 104%, prompting the Chinese government to state that it will be increasing tariffs on American products from 34% to 84% effective Thursday. Both combatants in the trade war are showing no signs of backing down as global markets lurch on the heels of President Donald Trump’s April 2 announcement of the “Liberation Day” tariffs.

NEW: China announces that it will increase tariffs on U.S. goods to 84% pic.twitter.com/uKZZO9XjTh

— Daily Caller (@DailyCaller) April 9, 2025

China is one of the few countries hit with Trump tariffs that has adopted a defiant tone in response, pledging Wednesday to “fight to the end” if the U.S. does not blink first. However, analysts and economists have highlighted that the Chinese economy is currently facing several key structural problems, such as high dependence on exports amid weak domestic consumer demand, a large debt burden and a longer-term slowdown in its real estate sector.

The Trump administration, meanwhile, is also striking a defiant tone in the stare down with China.

“It was a mistake for China to retaliate. The president, when America is punched, he punches back harder. That’s why there will be 104 percent tariffs going into effect on China tonight at midnight, but the president believes that Xi and China want to make a deal,” White House press secretary Karoline Leavitt said Tuesday. “They just don’t know how to get that started.”

Treasury Secretary Scott Bessent said Tuesday that China made a “big mistake” in retaliating against the U.S.

Markets around the world have been hit hard by the onset of the Trump administration’s policies. Some analysts project that the U.S. now faces increased recession risks, but Trump and his team are calling for trust in their longer-term vision to shore up American manufacturing using aggressive tariffs.

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