China slaps 84% tariffs on US imports as trade battle escalates
Chip Somodevilla; Wagner Meier / Getty Images
- China raised tariffs on US goods to 84% on Wednesday.
- The move follows President Donald Trump's decision to further increase tariffs on Chinese imports.
- On Tuesday, Trump said that he was waiting for Beijing's call to discuss trade levies.
China imposed 84% tariffs on US imports on Wednesday as the trade war between the world's two largest economies continued to escalate.
The move follows President Donald Trump's sweeping tariffs against trade partners, including imposing cumulative 104% charges on Chinese goods.
Beijing retaliated after the US tariffs took effect on Wednesday. Its charges will be imposed from Thursday, a government statement said.
"China urges the US to immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect," the statement said.
The announcement pushed S&P 500 futures down 1.7%, Dow futures declined 1.8% and falls on European stock markets accelerated, with the broad Stoxx 600 index sinking more than 4%.
Zhiwei Zhang, chief economist at Pinpoint Asset Management, said China had sent a "clear signal" that it intended to maintain its stance despite the higher US tariffs.
"China can afford to wait. I don't expect a quick and easy way out from the current trade conflict," Zhang said. "The damage to the two economies will become visible soon. The outlook for international trade and global economic growth is highly uncertain."
On Tuesday, Trump wrote on TruthSocial that he was waiting for Beijing's call.
"China also wants to make a deal, badly, but they don't know how to get it started. We are waiting for their call," Trump wrote.
White House Press Secretary Karoline Leavitt said later in the day that if China called to make a deal, Trump "will be incredibly gracious, but he's going to do what's best for the American people."
Beijing has indicated that it was not backing down and vowed on Tuesday to "fight to the end."
"Judging from its actions, the US doesn't seem to be serious about having talks right now," said Lin Jian, a Chinese foreign ministry spokesperson.
"If the US truly wants to talk, it should let people see that they're ready to treat others with equality, respect and mutual benefit."
Analysts are bracing for a long standoff between the two mega economies.
"We see a narrow path to resolution for the ongoing tariff gridlock between the US and China as well," wrote Yeap Jun Rong, a market strategist at IG.
"Even if negotiations resume in the future, reaching a consensus may prove difficult, suggesting that trade tensions could persist for an extended period."