CNBC reported that on April 9, the Office of the Tax Committee of the State Council of China said that the tax rate on imported goods from the US to China will increase from 34% to 84% from April 10.
This is considered a strong reaction of Beijing after the Trump administration announced the imposition of a series of tariffs on imported goods from China.
The continued escalation of tariffs could send trade between the world's two leading economies in a state of stagnation. According to the US Trade Representative Office (USTR), in 2024, the US exported 143.5 billion USD of goods to China, while importing 438.9 billion USD of goods from this country.
The Trump administration announced a widely countervailing tax policy on April 2, warning countries not to retaliate. Some countries have shown their willingness to negotiate to reach an agreement, but others have taken a tougher stance and quickly announced countervailing tax measures, including China.
President Trump raises the total tariffs on Chinese goods to 104%. Including the tariffs that have been maintained since the first terms of Mr. Trump and Mr. Biden (about more than 20%), Beijing now has to pay a total of nearly 125% of the tariffs.
The US S&P 500 index closed on April 8 down nearly 20% from its highest level, officially falling into the downward market, while the Korea Kospi index also fell into a similar situation on April 9.
