The United States-China tariff war reached a new high where the Trump administration has imposed a total of 104 per cent after Beijing slapped retaliatory levies of 34 per cent. And it seems that this is going to be a never-ending saga (for at least now) as China again added new tariffs on all US products.
Chinese foreign ministry said that they will impose 84% tariff on all the US products from April 10. This came hours after he released a White Paper.
China has published a white paper “China’s Position on Some Issues Concerning China-US Economic and Trade Relations” on Wednesday, criticising the US for levying tariffs exceeding USD 500 billion on Chinese exports since 2018, describing it as “unilateralism and protectionism” that disrupts international trade cooperation.
The document states that trade tensions have substantially hindered regular economic cooperation between both nations, as reported by Xinhua.
Here are some key points:
1. Revocation of China’s MFN status violates WTO rules
In April 2025, the White House released the America First Trade Policy Executive Summary, reviewing legislative efforts to revoke China’s Permanent Normal Trade Relations (PNTR) status.
PNTR, which grants Most Favored Nation (MFN) treatment, has been central to China-US economic ties since 2001. Any move to withdraw it is seen as a unilateral, protectionist action that violates WTO rules and disrupts the multilateral trade framework.
The WTO mandates MFN status as a core principle, and past US actions—like Section 301 tariffs on Chinese goods—have already been deemed non-compliant by WTO panels. Revoking China’s PNTR would significantly destabilize bilateral trade, affecting sectors like investment, tech, and services. It could also fragment global economic structures. China opposes such unilateralism and reaffirms support for the rules-based, WTO-centered trading system. It urges the US to uphold its commitments and work collaboratively to protect the integrity of global trade and maintain economic stability.
2. US generalisation of the concept of national security hinders China-US economic and trade cooperation
In the White Paper, China said that the US has increasingly framed economic issues as national security threats, imposing sweeping trade and investment restrictions targeting their country. These include export bans, penalties, and tighter investment screening, which have disrupted bilateral business operations.
According to a September 2024 US-China Business Council survey, American companies in China face mounting challenges due to US-imposed measures. Trade restrictions have expanded, with new rules in January 2025 targeting Chinese-made connected vehicles and a security review launched into Chinese drones. Authorities cite trade deficits and security risks to justify actions against Chinese tech and telecom firms.
On the investment front, the US strengthened the Committee on Foreign Investment in the United States (CFIUS) and implemented outbound investment bans in January 2025, targeting China’s semiconductor, quantum, and AI sectors. A February memo proposed expanding these restrictions to biotech and aerospace. These measures raise compliance costs, hinder bilateral economic cooperation, and threaten global supply chains and trade stability.
3. US abuse of export controls destabilises global supply chains
The US has expanded its national security scope and applied extraterritorial controls, using export restrictions as political tools. Since 2022, it has tightened measures targeting China’s semiconductor and AI sectors, impacting circuits, software, and manufacturing. These controls disadvantage developing nations and disrupt technological growth. Under human rights pretexts, numerous Chinese firms were sanctioned despite a lack of evidence. These actions caused financial losses and global supply chain instability. The opaque US sanction process, reliant on vague criteria, further complicates removal. Semiconductor restrictions imposed in 2023–2024 have affected 24 equipment categories. Nvidia warns of innovation setbacks, with $130 billion in US losses.
4. Section 301 tariff measures are prime example of unilateralism
The Section 301 tariff actions implemented by the United States exemplify discriminatory trade practices and economic isolationism. These measures disrupt international commerce frameworks and destabilise global production networks, whilst failing to address America’s trade imbalances or enhance its industrial capabilities. Additionally, these tariffs have led to increased costs for American businesses and consumers through higher import prices. Instead of halting existing Section 301 investigations, the United States has persisted by initiating another probe into alleged non-market activities in China.
5. US section 232 investigations undermine multilateral trade rules
Since 2017, the US has increasingly used Section 232 investigations as a protectionist trade tool under the guise of national security. Between 2017 and 2021, it launched eight such probes, targeting products like steel, aluminum, and autos. In 2018, despite Pentagon objections, the US imposed 25% and 10% tariffs on steel and aluminum, respectively. These measures served as leverage in trade talks—lifting tariffs on Canada and Mexico only after NAFTA renegotiations, and converting South Korea’s tariffs to quotas after auto concessions. Similar tactics were used with the EU. Such actions abuse national security exceptions, violate WTO rules like MFN treatment and tariff bindings, and distort global trade. In 2025, the US escalated these measures, expanding tariffs and launching new Section 232 investigations on copper, timber, and other critical goods under its “America First” policy.
6. US abuse of trade remedies adds global uncertainty
The “America First Trade Policy” pushes stricter anti-dumping and anti-subsidy rules, including investigating transnational subsidies and reviving “zeroing”—both of which violate WTO rules. In 2024, the US changed regulations to allow transnational subsidy probes, contradicting both WTO and US laws requiring subsidies to originate within the same country. “Zeroing” inflates dumping margins and has been ruled illegal in all 25 WTO cases against the US. These moves erode trade stability and risk escalating global tensions.
7. US use fentanyl as a pretext to impose restrictive economic and trade measures on China
In early 2025, the US twice raised tariffs on Chinese goods and ended de minimis duty exemptions, citing fentanyl concerns—claims unsupported by facts. China strictly controls fentanyl exports, with no shipments to North America in 2023, and has cooperated with US authorities since 2019. The US rationale for ending de minimis exemptions is weak; the policy enhances trade efficiency, supports small businesses, and aligns with WTO norms. China’s own balanced tax policies and platforms like Tmall, Alibaba boost global trade.
8. “Reciprocal Tariffs” will backfire on US
On April 2, 2025, the US imposed 34% tariffs on Chinese goods, followed by a 50% hike in retaliation to China’s countermeasures. This aggressive escalation threatens global economic stability and reverses years of multilateral progress. Tariffs won’t fix US issues—they fuel inflation, disrupt supply chains, and burden domestic industries. Yale and Peterson Institute data show households face rising costs, while markets slump. Experts now forecast a 1% drop in US GDP and global trade, deepening recession risks.
9. China and US can resolve differences through equal-footed dialogue
As the world’s two largest economies, China and the US share deep, extensive economic and trade ties involving numerous stakeholders. Given the scale of this relationship, some differences are natural. The most constructive way to manage these is through equal-footed dialogue and pursuit of mutually beneficial cooperation. Strengthening China-US cooperation not only serves the fundamental interests of both peoples, but also carries significant implications for global peace, economic stability, and sustainable development.
10. World anticipates China-US cooperation to generate more development opportunities
China and the US are central pillars of the global economy, together contributing over one-third of global GDP and nearly a quarter of the world’s population. Their trade accounts for around 20% of global trade flows. As the top two consumer markets, they play key roles in global supply chains—driving raw material exports, intermediary production, and services—enhancing global value chain efficiency. Stable China-US economic ties benefit not only both nations but the world at large.
To strengthen global economic governance, China and the US can jointly promote rules that reflect today’s productivity trends. Platforms like the WTO and regional trade agreements remain vital. Despite differing views on ideal governance models, the focus should be on constructive dialogue and reform, not blame or resistance. Working together, both sides can help evolve a more effective multilateral system.
