China sets 84% tariffs on all US products in reaction to Trump's 104%

China has implemented brand new tariffs of 84% on the importation of all US products, a measure that caused stock markets to decline further, heightening anxieties of further intensification in Donald Trump’s trade conflict.

The Chinese finance ministry announced on Wednesday that it would enforce 84% tariffs on US goods starting Thursday, an increase from the previously stated 34%.

This decision followed shortly after new tariffs on imports to the United States from multiple economies surged, with tariffs placed on Chinese commodities since Trump's return to the White House hitting an astounding 104%.

China’s response caused stock markets, which had tumbled on Wednesday, to fall even more with key indices down in the UK, Germany, France, and Spain. The FTSE 100 in London dropped by 3.5%, Germany's Dax index fell by 3.8%, France’s Cac 40 decreased by 3.9%, and Spain's Ibex dipped by 3.2%.

Prior to the announcement of the 84% tariffs, the Chinese government stated it was not looking to engage in a trade conflict, but “will never stand by and let the legitimate rights and interests of the Chinese people be harmed and stripped.”

The global economy has been disturbed since broad US tariffs of 10% went into effect over the weekend, causing significant market sell-offs globally and inciting worries of a recession.

The declines in Europe followed another volatile day on several Asian markets. Japan’s Nikkei index closed almost 4% down, while Taiwan’s leading stock index was 5.8% lower. Hong Kong’s Hang Seng index recovered some earlier losses to end 0.4% lower, and South Korea’s Kospi 200 index dropped by 1.8%.

Meanwhile, China’s stock markets rose, seemingly weathering the challenges after government measures. The SSE composite index in Shanghai closed 1.1% higher, while the Shenzhen SE composite increased by 2.2%.

Oil prices dropped for a fifth consecutive day on Wednesday, reaching the lowest level in four years, since February 2021, due to concerns that a global trade conflict would lessen demand and impact economic growth negatively. Brent crude oil futures prices declined to as low as $58.47.

The US tariffs are specifically designed for certain countries based on a formula criticized by economists, which divides the trade in goods deficit by twice the total import value.

“President Trump possesses unwavering determination and will not break,” press secretary Karoline Leavitt stated on Tuesday. “And America will not falter under his leadership.”

US stocks declined on Tuesday for the fourth consecutive trading day following Trump's tariff announcement last week, with the S&P 500 closing below 5,000 for the first time in nearly a year.

Beijing has accused the US of misusing trade policies to undermine China, and of failing to uphold commitments under numerous agreements including the phase one trade deal signed during Trump’s first term, and of “systematically ramping up economic and other forms of pressure against China.”

Trump asserts his policy will revive the country's lost manufacturing hub by compelling companies to move back to the US. However, numerous business specialists and economists question how quickly—if at all—this could happen, warning of increased inflation as tariffs drive up prices.

US Treasury Secretary Scott Bessent stated the new tariffs were at their “maximum” levels, and expressed optimism that talks would reduce them.

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