Tensions between the world’s two largest economies reached a boiling point on Wednesday as China announced an 84% blanket tariff on all U.S. imports, effective April 10. The move, issued through the State Council Tariff Commission, is Beijing’s retaliatory response to Washington’s earlier tariff hike from 34% to 84% on Chinese exports.
In a strongly worded statement, Chinese authorities accused the U.S. of engaging in “economic bullying” and violating global trade norms. Officials cited both domestic law and international principles to justify the decision, urging the White House to abandon what they called “unilateral actions” and return to the negotiating table.
The tit-for-tat escalation marks a significant downturn in diplomatic and economic relations, pushing both sides toward near-total trade lockdowns. Global markets responded swiftly. Bitcoin, often seen as a barometer for geopolitical risk, slipped below $76,000 following the news, while broader investor sentiment turned risk-off.
Escalation of Trade Tensions
China’s Ministry of Commerce expressed “grave concern and firm opposition,” denouncing the United States’ tariff actions as reckless and damaging to the international rules-based order. China also emphasized its position as a WTO member entitled to respond firmly to what it sees as unjust trade aggression.
Sky News Asia correspondent Helen-Ann Smith noted that while other countries are opting for behind-the-scenes diplomacy, China is deliberately choosing public confrontation—signaling that appearing resilient against U.S. pressure may be politically more valuable than the economic cost of retaliation.
In Washington, U.S. Treasury Secretary Scott Bessent called China’s move “a loser” for Beijing, stating that the country remains the “worst offender in the global trading system.” While maintaining that the White House is open to talks, Bessent suggested China’s unwillingness to negotiate was both self-defeating and isolating.
Impact on Global Markets
The tit-for-tat tariff increases have sent shockwaves through global financial markets. U.S. stock futures experienced significant declines, with the Dow Jones Industrial Average futures dropping 900 points (2.4%), the S&P 500 futures falling 2%, and Nasdaq 100 futures losing 1.7%. Major technology stocks, including Apple, Nvidia, and Tesla, also saw substantial losses.
Amid the escalating trade tensions, Bitcoin’s value has been affected. The cryptocurrency—often viewed as a hedge against geopolitical instability—fell below $76,000. This decline reflects broader market anxieties and highlights the growing interconnectedness between traditional financial systems and digital assets.
Quick Facts
- China imposed an 84% tariff on U.S. imports in retaliation for the U.S.’s 104% tariff on Chinese goods.
- U.S. stock futures dropped significantly, with the Dow Jones futures down 2.4%.
- Major tech stocks, including Apple and Tesla, experienced notable losses.
- Bitcoin’s value fell below $76,000 amid the escalating trade tensions.
