China slaps US with 84% in retaliatory tariffs

China announced an 84 percent tariff on US goods, effective Thursday, significantly increasing the previously set rate of 34 percent, the country's Finance Ministry confirmed on Wednesday.

This retaliatory move comes in direct response to US President Donald Trump's sweeping "reciprocal" tariffs, which went into effect earlier the same day. Among them is a massive 104 percent duty on Chinese goods, aimed at addressing what the Trump administration views as long-standing trade imbalances.

The European Union is also reportedly preparing its own set of countermeasures, expected to be unveiled later today, further intensifying the growing global trade standoff.

Trump has maintained that the aggressive tariff hikes are intended to correct the United States' trade deficits with several nations.

However, the policy has triggered widespread concern over the future of the global trading system, which has remained relatively stable for decades.

Read more: China slaps 34% tariff on US goods after Trump’s move

Markets around the world reacted sharply to the developments. The implementation of the 104 percent tariff on Chinese imports triggered a massive sell-off in global equities, while US bonds suffered significant losses amid investor fears of capital flight from American assets.

Speaking to Fox Business Network, US Treasury Secretary Scott Bessent labeled China's retaliation as "unfortunate" and claimed, “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”

The rapid escalation has sent shockwaves through financial markets, prompting crisis-level volatility and erasing trillions of dollars in market value across stocks, commodities, and emerging market currencies.