China announces historic tariff hike against the U.S.
In a strategic move that is set to escalate tensions in global trade, China officially announced on Wednesday, April 9, 2025, a significant increase in import tariffs on goods originating from the United States.
The new policy, published by China’s Ministry of Finance and approved by the Tariff Commission of the State Council, raises the tariff rate from 34% to a staggering 84%. The measure will take effect at 12:01 a.m. local time on April 10, 2025, and is justified based on the "basic principles of international law." This marks yet another chapter in the ongoing trade dispute between the world's two largest economies, reflecting deepening divisions over bilateral trade practices and global economic leadership.
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China Accuses the U.S. of Unilateral and Illegitimate Trade Practices
In its official statement, the Chinese government expressed strong disapproval of the United States' trade policies. According to the release, unilateral U.S. measures not only infringe upon China’s legitimate economic interests but also severely violate the rules of the multilateral trading system. Beijing described the tariff increases by the U.S. as "one mistake on top of another," and justified its own response as necessary to safeguard its economic sovereigntyChina condemned the U.S. actions as a “typical example of unilateralism, protectionism, and economic intimidation,” highlighting a growing frustration over what it perceives as unfair and coercive tactics by Washington.
Economic and Trade Impact of the New Measures
Beyond immediate trade flows between the two countries, China’s new tariff policy is expected to trigger significant ripple effects across the global economy. The Ministry of Finance warned that ongoing U.S. unilateralism undermines not only China’s interests but also the stability of the global economic order. The statement emphasized that the rules-based multilateral trade system is being put at serious risk.
This escalation could prompt chain reactions from other nations, disrupt international agreements, and erode trust in fair trade practices. By implementing this measure, China signals its readiness to take strong action to protect its rights and rebalance commercial relations on the world stage.
China Urges the U.S. to Return to Equal and Respectful Dialogue
Despite its firm stance, China made a direct appeal for renewed dialogue with the United States. “China urges the U.S. to immediately correct its wrongful practices, cancel all unilateral tariff measures against China, and properly resolve differences through equal-footed dialogue based on mutual respect,” the statement reads.
This message underscores China’s openness to negotiation but only under conditions of equality and respect. The call indicates that while Beijing is prepared for economic confrontation, it still sees diplomacy as a preferred path forward, provided both parties engage on fair and balanced terms.
Global Risks and Potential Market Reactions
This decision comes amid rising mistrust between the two powers, with implications that go far beyond trade. The sharp rise in tariffs may affect financial markets, increase costs for exporters and importers on both sides, and prompt strategic shifts among allied economies and trading blocs like the EU, ASEAN, and BRICS. Investors and analysts are already watching closely, particularly with regard to risk assets and movements in international fixed-income markets. In this climate, there's a growing interest in strong currency investments, such as euros, Swiss francs, and Canadian dollars further underscoring the relevance of international investment strategies like those offered by XP.
A New Chapter in an Ongoing Trade War
Geopolitically, China’s response reinforces its determination to confront what it sees as hostile economic actions. The new 84% tariff creates a substantial barrier that could make many U.S. products economically unviable in China. In turn, this could accelerate deglobalization trends, as countries seek to reduce their reliance on unstable trade partners. Multinational corporations may be forced to reevaluate their supply chains, sourcing strategies, and target markets due to rising logistical and tax-related costs. The global climate of uncertainty is intensifying, demanding heightened attention from business leaders, investors, and economic policymakers worldwide.
