Europe also hits back. We are officially in a new global trade war.

In a dramatic escalation of global trade tensions, China and the European Union have both hit back at the United States following sweeping new tariffs (correctly "import duties") imposed by the administration of Donald Trump.

China's Ministry of Finance announced an immediate increase in tariffs on U.S. imports, raising the rate from 34% to a staggering 84%. The move follows President Trump’s announcement earlier this week of a 104% tariff on Chinese goods, which was later raised to 125%.

Beijing's retaliation was swift and multifaceted. In addition to the tariff increase, from 10 April, China’s Ministry of Commerce imposed export controls on 12 American firms, prohibiting or restricted Chinese suppliers from selling dual-use technologies to them — products for both civilian and military applications.

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They are American Photonics, Novotech Inc., Echodyne, Marvin Engeering Company, Inc., Exovera, Teledyne Brown Engineering, Inc., BRINC Drones, Inc., SYNEXXUS, Inc., Firestorm Labs, Inc., Kratos Unmanned Aerial Systems, Inc., Domo Tactical Communications and Insitu, Inc.

China also filed a formal complaint with the World Trade Organization, denouncing the latest U.S.

measures as unjust and destabilizing.

The E.U., too, responds with import duties

The European Union also responded in kind, announcing that retaliatory duties on U.S. imports would begin next Tuesday, 15 April. These countermeasures follow the White House’s recent decision to sharply raise tariffs on all steel and aluminum imports.

“The E.U. considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial,” the European Commission said.

The E.U. duties range from 10% to 25% on specific U.S. products, but it isn't clear whether U.S. digital services are targeted too. 

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In Europe, financial markets reacted sharply to the developments. The FTSE 100 fell 3.3%, while Germany’s DAX dropped 4% amid investor fears of a broader trade conflict and economic slowdown.

In a gesture of conciliation, Trump announced a 90-day pause on tariff hikes for dozens of countries — excluding China — citing their decision not to retaliate. “Those who respect American strength will be respected in return,” he wrote.

With tit-for-tat measures mounting, analysts warn of a deepening global trade war that could disrupt supply chains, fuel inflation, and strain international alliances.

The world may have just entered a new era of global trade conflict — one not seen since the 1930s, when protectionism and economic nationalism helped sow the seeds of the worst global war.

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