China’s ‘blow-for-blow’ strategy in response to the United States' 34 per cent reciprocal duty apparently leads to the addition of another round of tariff to the existing thread. On Tuesday, April 8, the US government threatened to impose an additional 50 per cent tariff on all Chinese products in retaliation, bringing the total tariff on China to 104 per cent. But this figure is not the full story. When accounting for the 25 per cent tariff on aluminium and steel imports that the United States imposed in March, the total tariff on China rises to a staggering 129 per cent.
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The latest threat of a 50 per cent tariff is scheduled to take effect at midnight (CST time zone) on April 9, 2025, which was set as a deadline for China to reverse its 34 per cent tit-for-tat tariff on all American exports. But the President Donald Trump has assured to be gracious if China reaches out to him to make a deal. Until then, he will do what it takes him to protect American interests, said Trump.
However, despite the escalating tariff measures from the initial 20 per cent on all Chinese goods, followed by 25 per cent on aluminium and steel, 34 per cent again on all products, and now a looming 50 per cent, China remains largely unfazed. The Chinese government believes the trade war will ultimately harm the US economy more than its own. So, China decides to adopt a wait-and-watch policy and keep retaliating by every means, hoping that this approach will put the Trump government under pressure, prompting them to negotiate with China.
In response to the additional 50 per cent tariff threat, China’s commerce ministry said, “The US threat to escalate tariffs on China is a mistake on top of a mistake.”
While announcing the tariff threat, White House press secretary Karoline Leavitt also spoke on a same line and said, “It was a mistake for China to retaliate. When America is punched, [the president] punches back harder.”
Who is ultimately paying the price?
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