Beijing Stares US Right Back on 104% Tariff Imposition, Says 'Have Ample Policy Tools to..,' Will India Emerge Stronger?

As the US China Tariff War hits a new peak, the global trade landscape is shifting rapidly. On April 9, 2025, the United States officially imposed reciprocal tariffs on products from nearly 60 countries. The move sparked concern about rising inflation and slower economic growth, but Washington says it’s about strengthening domestic manufacturing and cutting trade deficits.

The boldest step in the ongoing US China Tariff War? A massive 104% tariff on Chinese goods. The message is clear: the US, under Donald Trump’s leadership, is taking a hardline stance on trade. But China, instead of backing down, is pushing back — hard.

Why Did the US Slap a 104% Tariff on China?

The US China Tariff War picked up pace when the White House first announced a 34% reciprocal tariff on Chinese imports. This came after China had already imposed a 34% duty on American goods. Earlier, the US had placed a 20% tariff on several Chinese products. But when China hit back with retaliatory measures, President Donald Trump decided to increase the pressure. He added another 50% duty, raising the total tariff to 104% on Chinese goods.

These tariffs, however, do not apply to all categories. Items like steel, aluminium, automobiles, and crucial auto components remain under separate industry-specific duties, as clarified by the White House.

China Refuses to Back Down Amid US Tariff Heat

Chinese Premier Li Qiang made it clear that China won’t be intimidated. Calling the US tariffs "one-sided and protectionist," he said they represent unfair economic pressure.

More importantly, he claimed that Beijing has ample policy tools to withstand this economic confrontation. Despite the mounting duties, China is determined to keep its growth stable and strong. This firm stand signals that the US China Tariff War isn’t ending anytime soon.

Can India Gain from the Ongoing US China Tariff War?

While the US and China remain locked in this tariff battle, many experts see a window of opportunity for India. Former RBI Governor Raghuram Rajan recently pointed out that the disruption caused by the trade war could work in India’s favour—if the country moves swiftly.

With companies looking to reduce their dependence on China, India might attract global manufacturers and investors. Quick and smart trade negotiations with the US could help India strengthen its export base and gain a bigger share in the global market.