On April 10, a White House official confirmed in an interview with CNBC that President Trump's announcement on April 9 to raise tariffs on China to 125% pertains specifically to the "reciprocal tariffs," increasing from 84% to 125%. With the additional 20% tariffs imposed due to the fentanyl issue, the total U.S. tariffs on China have now reached 145%.
In response to what they describe as Trump's "tariff bullying," China has firmly retaliated. On April 9, the Customs Tariff Commission of the State Council of China announced that starting from April 10 at 12:01 pm, the tariff rate on imports from the U.S. would be raised from 34% to 84%. This decisive action reflects China's dissatisfaction and determination to counter U.S. actions.
Following China's strong countermeasures, Trump's trade strategy has become increasingly aggressive. In the early hours of April 10, he announced on social media that due to over 75 countries and regions not retaliating against the U.S., the U.S. would suspend the collection of "reciprocal tariffs" on those nations for 90 days, switching to a 10% "baseline tariff." Meanwhile, tariffs on China would be significantly increased to 125%.
A White House official clarified that Trump's measures involve raising the 84% "reciprocal tariffs" on China to 125%. This news led to a sharp decline in the stock market, with the Nasdaq index dropping 4.3% and the S&P 500 falling 3.5%, reflecting market concerns over the escalating trade conflict.
International Response and China's Counteractions
U.S. Treasury Secretary Scott Bessent stated that over 75 countries have contacted the U.S. and anticipated that more would follow. He indicated that implementing large-scale tariffs and then pressing the pause button to negotiate with each country has been part of their strategy.
China's ambassador to Australia, Xiao Qian, wrote in a local newspaper that China is willing to collaborate with Australia and the international community to address current challenges. Additionally, China has lodged a new complaint with the World Trade Organization (WTO), asserting that the tariffs imposed by the U.S. are reckless and could further destabilize global trade.
Reports indicate that China has prepared multiple countermeasures in response to the increased U.S. tariffs. A spokesperson for the National Film Administration stated that the U.S. government's erroneous actions will likely diminish domestic audiences' favorable views of American films, potentially leading to a reduction in the import of U.S. films. Earlier, a WeChat public account affiliated with Xinhua News, "Niu Tan Qin," revealed that if the U.S. escalates tariffs, China is prepared with at least six countermeasures, including raising tariffs on agricultural products like soybeans and sorghum, banning U.S. poultry and films, and suspending drug cooperation regarding fentanyl.
Chinese President Xi Jinping has called for building a community with a shared future with neighboring countries and striving to open new ground for China's neighborhood work, emphasizing the need to strengthen strategic trust with neighboring countries, build a high-level connectivity network. This includes strengthening cooperation in industrial and supply chains, advancing security and law enforcement collaboration, and expanding people-to-people exchanges.
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