Beijing announced on Friday it will increase tariffs on U.S. imports from 84 percent to 125 percent, in retaliation against the U.S. decision to hike duties on Chinese goods to a total of 145 percent.
The White House confirmed on April 10 that U.S. tariffs on Chinese goods have risen to 145 percent, factoring in the earlier 20 percent tariffs imposed in connection with fentanyl trafficking.
U.S. Treasury Secretary Scott Bessent had criticized China for increasing its tariffs on American goods to 84 percent, saying it would ultimately hurt China more.
He said that the “proportionality for the Chinese is going to be much worse.”
“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,” he said.
He said a good step for the Chinese would be “acknowledging that the precursor chemicals for fentanyl come from China.”
When asked if he was prepared to remove Chinese stocks from U.S. exchanges, Bessent said that “everything is on the table.”
“The U.S. is trying to rebalance toward more manufacturing. China needs to rebalance towards more consumption,” he said.
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he said.
European Commission President Ursula von der Leyen said the bloc remains committed to “constructive negotiations with the United States.”
Before Trump’s 90-day pause, the United States had imposed a 20 percent tariff on all EU goods. Following Trump’s announcement on April 9, the 27-nation bloc will now be subject to a 10 percent baseline tariff on most goods, except steel and aluminum products, which are still subject to higher tariffs of 25 percent.
Von der Leyen and Qiang discussed setting up a “mechanism for tracking possible trade diversion and ensuring any developments are duly addressed,” according to the readout.
She said that they had “a constructive discussion during which they took stock of bilateral and global issues.”
She added that there was an “urgency for structural solutions to rebalance the bilateral trade relationship and ensure better access for European businesses, products and services to the Chinese market.”