China raises its retaliatory tariff on the US to 84%, vows to ‘fight to the end’
New measures follow 34% levy placed on American goods last week in response to Trump tariffs; Beijing’s commerce ministry cites TikTok law as example of unfair US trade practice
BANGKOK, Thailand (AP) — China again vowed to “fight to the end” Wednesday in an escalating trade war with the US as it announced it would raise tariffs on American goods to 84% beginning Thursday.
Beijing also added an array of countermeasures after US President Donald Trump raised the total tariff on imports from China to 104%. Beijing said it was launching an additional suit against the US at the World Trade Organization and placed further restrictions on American companies’ trade with Chinese companies.
Introducing its white paper on trade with the US, China’s Ministry of Commerce said: “If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end.”
The Chinese government declined to say whether it would negotiate with the White House, as many other countries have started doing.
On Friday, China announced a 34% tariff on all goods imported from the US, export controls on rare earth minerals, and a slew of other measures in response to Trump’s raft of “Liberation Day” tariffs, which also included a 17% levy on Israeli goods. Trump then added an additional 50% tariff on goods from China, saying negotiations with them were terminated.
Wednesday’s newest measures include adding 11 American companies to a so-called “unreliable entities” list that would bar Chinese companies from selling them dual-use goods. Among the companies are American Photonics and SYNEXXUS, both of which work with the American military.
So far, China has not appeared interested in bargaining. Chinese Foreign Affairs Ministry spokesman Lin Jian said Wednesday that “if the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit.”
The Commerce Ministry white paper says that the US has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term. As an example, it cited a US law, enacted under Trump’s predecessor Joe Biden, that would ban TikTok unless it is sold by its Chinese parent company, ByteDance. The law violates a promise that neither would “pressure the other party to transfer technology to its own individuals,” according to the white paper.
Trump signed an order to keep TikTok running for another 75 days last week, after a potential deal to sell the app to American owners was put on ice. ByteDance representatives called the White House to indicate that China would no longer approve the deal until there could be negotiations about trade and tariffs.
China’s white paper also argued that economic exchange between the two countries is “roughly in balance” when taking into account trade in services and US companies’ domestic Chinese branches.
The white paper said that China had a trade in services deficit with the US of $26.57 billion in 2023, which is composed of industries like insurance, banking and accounting. Trump’s tariffs were designed to close trade deficits with foreign countries, but those were calculated only based on trades in physical, tangible goods.
“History and facts have proven that the United States’ increase in tariffs will not solve its own problems,” said the statement from China’s commerce ministry. “Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself.”
Times of Israel staff contributed to this report.
The Times of Israel Community.