Trump tariffs: Who will be hit hardest by China-US trade war as president threatens 104% levy?
Last week China retaliated with 34 per cent counter-tariffs on imported US goods, in the wake of President Donald Trump’s “Liberation Day” trade war.
On April 2, Mr Trump announced an extra 34 per cent tariff on all Chinese goods imported to the US, on top of an existing 20 per cent levy; bringing tariffs to 54 per cent.
Now, Mr Trump is threatening an extra 50 per cent tariff on Chinese goods if Beijing does not scrap retaliatory measures by today, Tuesday 8 April – taking tariffs to an unprecedented 104 per cent on Chinese imports, a White House official confirmed.
The China State Council Tariff Commission announced a 34 per cent reciprocal tariff last week, saying it was hitting back against “bullying” from the Trump administration.
“If the US insists on having its way, China will fight to the end,” the Chinese commerce ministry added today.
Responding to China’s new levies last week, Mr Trump wrote on Truth Social: “China played it wrong, they panicked – the one thing they cannot afford to do!”
On Monday, Mr Trump threatened that “all talks with China concerning their requested meetings with us will be terminated!”.
Here, we look at the areas that will be impacted.
Previously, retaliatory tariffs from China only covered specific industries such as fuel and agricultural products. Now, all US exports to China will be hit.
The US imports far more from China than it exports. In 2024, goods exported to China were worth $143.5bn, according to the US Trade Representative office.
Meanwhile, the US bought three times as many goods ($438.9bn) in the same period).
This makes the trade deficit $295bn in 2024 – a 5.8 per cent increase from the previous year; and a prime target for President Trump.
This means that the US will be less affected by retaliatory tariffs, Dr Xin Sun, a senior lecturer in Chinese and East Asian business at KCL, told The Independent.
“Given the imbalance in trade between China and US, the damage caused by China’s retaliation to US is due to be smaller than the impact of US tariff on China, which is not only the highest among all countries but also affects a wider range of sectors.”
