China Hikes Tariffs, EU Warns Retaliation
China’s tariff hike and the EU’s warning of tech-focused retaliation signal a sharp escalation in global trade tensions with the US
China has announced a steep increase in tariffs on US goods, raising them from 84% to 125% starting April 12, marking another escalation in the ongoing trade war between the two largest global economies. The move follows signs of disruption in Pacific shipping routes due to rising trade tensions.
Meanwhile, the European Union is preparing potential countermeasures if trade talks with the US, led by Donald Trump, fail to reach a deal. European Commission President Ursula von der Leyen said the EU aims for a "balanced" agreement but is ready to respond with tariffs, particularly targeting US tech giants like Meta and Google through a levy on digital advertising revenues. This would be enforced across the EU single market, not by individual countries.
If negotiations collapse, von der Leyen warned that the EU would reactivate its suspended retaliation against US steel and aluminum tariffs and could extend measures to US services, which currently dominate the EU market. She also emphasized the EU’s commitment to preventing Chinese goods blocked by US tariffs from flooding the European market. Despite the tensions, von der Leyen sees this as a turning point for global trade and an opportunity to modernize outdated WTO rules.
