China Slaps 84% Tariff On US Goods, In Dramatic Escalation Of Trade War

Chinese analysts say Beijing has its rationale for choosing a strong response to US tariffs

- Yew Lun Tian

SINGAPORE - China will raise tariffs on US goods to 84 per cent, up from the 34 per cent previously announced, in a dramatic escalation of the trade war between the world's two largest economies.

China's latest tariff hike, announced on April 9 and effective from April 10, is by far the most hard-hitting response against the tariffs that the United States had slapped on countries worldwide.

The salvo comes after the US had imposed an added 84 per cent tariff on Chinese goods from April 9, bringing the total tariff rate imposed on China during the current Donald Trump presidency to a whopping 104 per cent.

Beijing's hardline response contrasts with that of other countries. Phones have been ringing off the hook at the White House as leaders from across the world call to ask for talks to defray the tariffs.

More than 70 countries have approached the US, including Malaysia, whose Prime Minister Anwar Ibrahim said his country and Asean partners will be sending officials to Washington, DC, for negotiations.

The European Union is another major power to have retaliated against the US tariffs. On April 9, the EU said it will impose duties, mostly of 25 per cent, on some US goods from April 15.

Trade tensions between China and the US have spilled over into other areas. On April 9, China's Ministry of Culture and Tourism issued a travel warning to its citizens about travelling to the US, noting the "recent deterioration" of China-US trade relations and the security situation in the US.

China's uncompromising stance against the US tariffs has sparked warnings from foreign observers that this could escalate the trade war and further drag down the global economy.

But Chinese analysts tell The Straits Times that Beijing has its rationale for choosing a strong response.