Trump's Reciprocal Tariffs Spark Global Panic: China Fires Back With 84% Duties Amid Escalating Trade War

The global economy trembled on Wednesday as US President Donald Trump unleashed a sweeping wave of Trump tariffs, raising duties on Chinese imports to a staggering 104%, marking the most aggressive escalation in the US-China trade war to date. In a retaliatory move, China announced 84% tariffs on all American imports, sending shockwaves through international markets.

Trump's Tariffs Hit US Economy Hard

Brushing off recession warnings and tumbling markets, Donald Trump remained defiant, asserting that the Trump tariffs were generating “almost $2 billion a day” for the US economy. Speaking at a Republican fundraising dinner, he declared, “These countries are calling us up, kissing my ass. They want a deal, but we won’t blink first.” Trump doubled down by signing new tariffs on pharmaceuticals and low-cost electronics from China, effective next month.

The US President maintained that these aggressive Trump tariffs would force companies to relocate production back to American soil, reviving domestic manufacturing and reducing reliance on “unfair trade partners.”

China Retaliates: 84% Tariffs and White Paper Response

Refusing to back down, Beijing imposed 84% tariffs on all US goods, effective April 10, and placed several US companies on its export control and "unreliable entities" list. In a formal rebuttal, China released a white paper accusing the US of “unilateralism and protectionism,” and held the Trump tariffs responsible for disrupting global supply chains.

Markets Reel, Oil and Asian Currencies Slide

The consequences of the Trump tariffs were immediate and severe. Asian markets plummeted—Japan’s Nikkei dropped 2.7%, Hong Kong’s Hang Seng fell over 3%, and the South Korean won tumbled. Oil prices also dipped, with WTI crude falling below $60 a barrel for the first time in four years. European markets were equally shaken, with indices in Paris, Frankfurt, and London falling around 3%.

Meanwhile, Canada slapped retaliatory tariffs on US auto imports, and the EU warned of its own countermeasures if Washington proceeds with new 20% tariffs. French President Emmanuel Macron publicly urged Trump to reconsider, saying, “If the EU must respond, so be it.”

Global Condemnation Mounts: WTO Norms at Stake

Critics from across the globe denounced the Trump tariffs as a violation of international trade norms. Russia’s foreign ministry accused Trump of “disregarding WTO principles,” highlighting fears that the US was turning away from multilateral trade frameworks.

Despite mounting opposition, US President Donald Trump appears steadfast in his mission to reset trade balances, believing the Trump tariffs will deliver long-term economic independence.

High-Stakes Gamble For US and China

As the Trump tariffs continue to reshape global commerce, the world watches closely. While Trump frames the tariffs as a patriotic revival of American industry, the backlash from global powers, market volatility, and retaliatory actions suggest a high-risk gamble that could have long-lasting economic repercussions.

With both Washington and Beijing locked in a tit-for-tat tariff escalation, the question remains: who will blink first—or will the global economy pay the ultimate price?