The global trade war between the US and China has intensified with Beijing announcing sweeping new tariffs on American goods effective from tomorrow.
China will now impose an 84% import tax on goods from the US – a staggering 50% hike from previous levels.
The move is a direct response to Washington’s decision earlier this week to slap a fresh 50% tariff on Chinese exports, bringing the total US levy to 104% after earlier increases of 34% and 20%.
In a formal complaint to the World Trade Organisation (WTO), China warned that the situation has “dangerously escalated,” accusing the US of threatening global economic stability.
“The situation has dangerously escalated. As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” Beijing said in a statement.
This tit-for-tat tariff exchange marks one of the most serious flare-ups in trade tensions between the two superpowers in recent years. Economists are warning that the spiralling duties could hit global supply chains, raise costs for consumers, and dampen investor confidence in already fragile markets.
The West Midlands, which relies heavily on international trade for its manufacturing, automotive, and logistics sectors, could feel the ripple effects of this global fallout.
Companies exporting to the US or reliant on Chinese components may face higher costs and longer delays, adding pressure to firms already grappling with inflation and a sluggish post-pandemic recovery.
With no signs of either side backing down, analysts fear further disruption in the months ahead – and are calling for urgent diplomatic efforts to defuse the growing crisis.
