US Treasury Secretary Scott Bessent bluntly dismissed China’s retaliatory 84% tariff on American goods.
"They’re the surplus country… Their exports to the US are five times our exports to China. So they can raise their tariffs. But so what?” Bessent said speaking on Fox Business.
In response to trade restrictions imposed by Donald Trump, China has raised tariffs on US goods by 50%, bringing the total duty on American imports to 84%. This move is seen as a retaliatory measure in the ongoing trade war initiated by Washington. The Chinese government's decision will take effect on April 10.
Markets around the world have responded to the escalating US-China trade conflict with notable downturns:
European markets also opened in the red:
JPMorgan Chase analysts warn of a growing risk of a global economic slowdown, raising their 2025 global recession forecast from 40% to 60% in light of the new tariffs.
Oil prices have fallen sharply, with Brent crude dropping below $60 per barrel for the first time in four years. By midday April 9, June Brent futures were down 6.7%, trading at $58.57, a level not seen since February 2021.
This drop in oil prices also dragged down the Russian stock market, which fell below 2,600 points — its lowest level since December 20, 2024.
Meanwhile, gold is benefitting from its safe-haven status. The spot price rose more than 2%, climbing back above $3,000 per ounce. Over the past year, gold prices have surged nearly 30%, driven largely by geopolitical tensions.
The Chinese Ministry of Commerce announced the addition of six American companies to its Unreliable Entity List. These companies — including Shield AI and Sierra Nevada — have come under fire due to their ties with Taiwan, whose sovereignty China does not recognize.
In addition, the ministry announced export controls on dual-use goods (civilian and military) for 12 American technology and manufacturing firms, including drone manufacturers and various communications companies:
The exact impact on Russia remains uncertain. Central Bank head Elvira Nabiullina expressed concern, noting that tariff wars typically hurt oil prices the most:
"If these trade wars escalate, it usually leads to a decline in global trade, the world economy, and possibly demand for our energy exports," she said.
According to economist Mikhail Belyaev, the current tensions are strictly between the US and China, whereas Russia is not directly involved:
However, since a quarter of all global trade involves the US and China, indirect effects are likely. If tensions escalate, it could reduce global trade and slow economic growth, impacting demand for Russian energy exports.
A global slowdown may decrease demand for raw materials, while rising competition may push prices down. Experts believe China could boost exports to Russia as it cuts off certain US markets.
Reportedly, Chinese authorities are expected to respond to the US tariff hikes in the following ways: