China isn't budging in the tariff stare-down with President Donald Trump. In a statement directed at the president regarding the newly implemented policy, the China Commerce Ministry said China will “fight to the end” to protect its own interests, stating that the tariffs are “groundless and a typical unilateral bullying practice.”
President Trump is digging in as well. The U.S. is set to begin adding an additional 34% tariff on goods coming from China on Wednesday, in addition to a 20% tariff that is already in place.
President Trump hinted that the tariff could exceed 100% if China escalates the trade war.
RELATED STORY | Dow, S&P continue losing streak as investors reel from Trump tariffs
“With China, as you know, against my statement, they put a 34% tariff on top of what their ridiculous tariffs were already,” Trump said. “I said if that tariff isn't removed by tomorrow at 12 o'clock, we're putting a 50% tariff on top of the tariffs that we put on.”
President Trump has sought to lower the trade deficit that the U.S. has with China and other nations through tariffs. In 2023, the United States imported $436 billion in goods from China while sending $154 billion to China.
China is the third-largest importer of U.S. goods, according to the Observatory of Economic Complexity. China is also the second-largest exporter of goods to the U.S., slightly behind Mexico.
The White House has claimed that the trade imbalance has led to a loss of U.S. manufacturing jobs.
"China’s non-market policies and practices have given China global dominance in key manufacturing industries, decimating U.S. industry," the White House said. "Between 2001 and 2018, these practices contributed to the loss of 3.7 million U.S. jobs due to the growth of the U.S.-China trade deficit, displacing workers and undermining American competitiveness while threatening U.S. economic and national security by increasing our reliance on foreign-controlled supply chains for critical industries as well as everyday goods."
RELATED STORY | The most reliable used cars to buy, as auto tariffs take effect
