China’s finance minister said on Wednesday that Beijing would match President Donald Trump’s additional 50% tariff by increasing duties on US imports from 34% to 84%, effective Thursday, April 10.
The move comes a day after President Donald Trump raised tariffs on the country to 104% at midnight on Wednesday after Beijing refused to step back on the 34% tariff amid the escalating tariff war between the world’s two largest economies. The U.S. President is expected to comment on China’s latest development later this Wednesday.
Speaking with Fox Business, U.S. Secretary of the Treasury Scott Bessent was asked on Wednesday morning if the U.S. is considering the removal of U.S.-listed Chinese stocks as a possible next step.
“We’ve got Chinese stocks trading on U.S. exchanges, U.S. investors are buying those stocks… that’s helping China to fund its military, let’s face it.” Fox Business host Maria Bartiromo stated before asking, “Are you willing to go that far to remove Chinese stocks from US exchanges?”
Scott Bessent said, “Well, I think everything is on the table,” before detailing upcoming measures on export controls and limits in the Chinese assets that U.S. retail and institutional investors “should not be investing.”
Bessent is seen as a close associate of Trump’s economic policy team.
“We’re putting in process export controls for high value security-related goods. We’re talking about capital export, capital controls in terms of — as you said — a blacklist of things that US..whether pension funds, and [inaudible], and investors should not be investing in to fund the Chinese military machine.”
Bessent said that the delisting of Chinese companies from U.S. exchanges would be something decided by Trump noting later that both leaders “have a very good personal relationship.”
“That will be President Trump’s decision. You know, at the end of the day, President Trump and Chairman Xi have a very good personal relationship and I am confident that this will be resolved at the highest level,” the U.S. Secretary of Treasury stated.
Later in the interview, Bessent said “it’s unfortunate that the Chinese don’t want to come and negotiate,” adding that the country has “the most imbalanced economy in the history of the modern world.”
Shares of U.S.-listed Chinese companies tumbled on Tuesday after the White House confirmed that a new 50% tariff on imports from China took effect at noon Eastern Time.
As of Wednesday 11:00 Eastern time, Chinese carmakers Zeekr and Nio are trading 3.4% and 1.4% lower while XPeng shares are rising 1.70%. Li Auto shares are trading flat.
The new levy raises the total U.S. tariff rate on Chinese goods to 104%, after Beijing refused to roll back a 34% retaliatory tariff announced last Friday.
U.S. President Donald Trump accused earlier this week China of having “record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation.”
In response to the new U.S. tariffs, China’s Ministry of Commerce last Friday called the measure “a typical act of unilateral bullying” and said it had filed a formal complaint with the World Trade Organization. The ministry argued that the new tariffs violated WTO rules and harmed the legitimate rights of other member nations.
The latest tariffs are part of a broader package announced by Trump last week, which included new duties ranging from 10% to 54% on goods from more than 180 countries and regions. China was hit with the highest rate, while Vietnam and Taiwan faced 46% and 32% tariffs, respectively. Trump also confirmed a 25% tariff on all foreign-made vehicles and auto parts.
