On the evening of April 9, around 7 p.m., the Chinese Communist Party (CCP) escalated its retaliatory actions by once again increasing tariffs. The State Council Customs Tariff Commission announced that starting from 12:01 p.m. on April 10 Beijing time, tariffs on all imported goods from the United States would be raised from 34% to 84%, officially targeting the U.S. for actions taken earlier that day.
U.S. President Trump’s equivalent tariffs on dozens of countries took effect on Wednesday (April 9). Approximately 70 countries have already reached out to the White House to initiate negotiations. However, Beijing announced retaliatory tariffs of 34% on American imports starting from April 10, and stated they will “stay the course.” In response, the White House announced on April 9 that an additional 50% tariff would be imposed on China, bringing the new tariff rate on all Chinese goods during Trump’s second term to 104%.
Analysts suggest that Beijing’s tough stance stems from knowing that the U.S. has no intention of negotiating with China. By taking a hardline approach and boosting nationalist sentiment, the CCP seeks to divert attention and possibly alleviate internal pressure. The CCP’s countermeasures also aim to form an anti-U.S. alliance, though success in this endeavor is doubtful.
Following Trump’s announcement of a 34% tariff on Chinese goods, the Beijing authorities retaliated by announcing tariffs of 34% on all imported goods from the U.S., along with barring six American companies from engaging in China-related import and export activities and implementing export controls on seven rare earth-related products.
The CCP’s decision to impose a 34% retaliatory tariff on American imports sparked Trump’s discontent, leading to an ultimatum: if the 34% tariff was not withdrawn by April 8, an additional 50% tariff would be imposed on China starting from April 9. If implemented, the tariff rate on Chinese imports to the U.S. would reach 104%.
In response, the Chinese Ministry of Commerce issued a statement on its official website, affirming that the CCP will stick to its stance. White House officials stated that the U.S. would begin imposing a 104% tariff on Chinese imports starting from midnight on Wednesday.
Continuing, the State Council Customs Tariff Commission of China announced on the evening of April 9 that starting from 12:01 p.m. on April 10, tariffs on all imported goods from the U.S. would be raised from 34% to 84%, retaliating against the U.S. over actions taken on April 9.
Compared to the U.S.-China trade war in 2018, which involved both bargaining and fighting, ultimately resulting in a phase one trade agreement, why the unusually firm stance from the Chinese side this time?
Renowned political and economic commentator Wu Jialong explained to Dajiyuan that Xi Jinping realized Trump had no intention of negotiating with him and directly announced tariff increases, a departure from the past. Xi Jinping currently faces internal power struggles, and by fiercely retaliating against the U.S., he aims to stoke nationalist sentiment and present a showdown between major powers.
Wu Jialong stated, “By confronting the U.S. in a manner that portrays ‘I represent the country and challenge the U.S.; if you dare to fight and oppose me, is that justifiable?’ The priority is unity in foreign affairs while avoiding internal conflicts. Xi’s need to shift the focus externally indicates internal pressures he faces.”
Senior commentator Tang Jingyuan commented to Dajiyuan that the CCP’s sudden shift to comprehensive retaliation and counterattacks reflects a political logic. The CCP has deemed its previous strategies ineffective, especially with Trump’s preparedness this time, prompting a complete change in tactics.
Tang Jingyuan believes the CCP sought to immediately ignite a tariff war with the U.S. through a forceful approach. The CCP believes it can make use of China’s advantage in human rights violations, even if it means the Chinese people endure hardships akin to the “Great Leap Forward” for three years, to outlast the U.S., which may buckle under pressure from rising prices, inflation, and job difficulties, thus prompting societal unrest.
The “Great Leap Forward” political and social movement that occurred from late 1957 to early 1961 ultimately led to the Great Chinese Famine of 1958-1962, resulting in the deaths of approximately 15 to 55 million people.
Tang Jingyuan emphasized that the CCP aims to find alternative outlets for its vast production capabilities due to the U.S. blocking nearly all Chinese goods with tariffs exceeding 100%. With “investment” and “consumption” avenues dampened, the CCP’s economy heavily relies on exports.
Reuters reported on Tuesday (April 8) that following increased tariffs imposed by the U.S. on China and its partner nations, China’s options are becoming more limited. While looking to open up to other markets in Asia and Europe, such export shifts may not resolve the fundamental issues at hand.
Regarding a phone call between European Commission President von der Leyen and Chinese Premier Li Keqiang on Tuesday (April 8), focusing on China’s crucial role in managing trade shifts that may result from tariffs, especially in industries already affected by global excess capacity, Tang Jingyuan highlighted that China’s attempts to export its massive overcapacity will raise alarms among other countries. Preventing China from flooding the European market with large quantities of cheap goods is paramount to avoid destructive impacts on Europe’s economy.
In light of these circumstances, Tang Jingyuan noted that Xi Jinping’s authority is diminishing, and the future for the CCP remains uncertain. Under these conditions, the four words that best describe the situation regarding the CCP are “lucky or not.”
According to financial news reports from mainland China, the U.S. is China’s largest trading partner. In 2024, China’s exports to the U.S. reached $524.656 billion, accounting for 14.7% of its total exports.
Tang Jingyuan emphasized that Trump’s imposition of tariffs exceeding 100%, essentially blocking almost all of China’s produced goods, will inevitably force the CCP to find alternative solutions for these massive amounts of goods. With “investment” and “consumption” avenues choked off, the CCP’s economy is left solely reliant on “exports.”
On Tuesday, Reuters reported that as a consequence of U.S. tariffs on China and its partner nations, China’s options are dwindling rapidly. Despite seeking to tap into other markets in Asia and Europe, the challenge of transferring exports may not solve the underlying problems.
The inherent risks of the CCP pursuing an aggressive approach to finding new markets for its significant production excess will inevitably raise concerns among other countries. Vigilance is necessary to prevent China’s large-scale, low-cost goods from flooding European markets, dealing a catastrophic blow to the region.
Xi Jinping’s predicament suggests a weakening of authority, with uncertainties surrounding the CCP’s longevity. Given this backdrop, the only phrase that aptly captures the situation regarding the CCP is “lucky or not.”