China Warns of Retaliation as Trump Threatens 50% Tariff Hike

China Tariff

Tensions Escalate Over US-China Trade as April 9 Tariff Deadline Looms

China has pledged swift retaliation if the United States follows through with President Donald Trump’s latest 50% tariff threat. The Chinese Ministry of Commerce (MoC) made the announcement on April 8, 2025, signaling a firm stance against what it called “unreasonable escalation” of trade restrictions.

The warning follows Trump’s April 7 post, where he declared that if China did not retract its 34% retaliatory tariffs, the US would implement additional duties. These would come on top of the already scheduled tariff increase from 34% to 54%, set to begin on April 9. If fully applied, US tariffs on Chinese goods could spike to 104%.

Retaliation Could Trigger 100% Tariffs on Key US Exports

China stated it “will accompany it to the end,” implying no backing down before the deadline. Historically, Beijing has responded with mirrored tariffs, suggesting a likely 50% retaliatory hike across a broad range of US imports.

If implemented, China’s tariffs would raise total duties on some American goods to 84% or more. Commodities such as crude oil, coal, liquefied natural gas (LNG), and various agricultural products—already targeted in previous rounds—would be hit hardest. This tit-for-tat dynamic threatens to push overall tariffs near or above 100%, severely affecting bilateral trade.

Market Uncertainty Grows as Executive Action Remains Pending

Despite the public announcement, the White House has not issued an executive order to formalize the additional 50% tariffs. Without clarity on enforcement, businesses and markets face growing uncertainty.

Meanwhile, both Washington and Beijing claim to support dialogue. However, current rhetoric indicates that negotiations are off the table—at least for now. The trade standoff, if not resolved quickly, could ripple across global supply chains and drive commodity price volatility.