The cost of doing business with China rose dramatically Wednesday. Costs will soar even more Thursday.
The U.S. levied a 104% tariff on all Chinese imported goods beginning just after midnight Wednesday morning. In response, the Chinese Office of the Tariff Commission of the State Council announced the country would levy an 84% tariff on all U.S. imported goods beginning just after midnight Thursday.
“The U.S.’ practice of escalating tariffs on China is a mistake on top of a mistake,” the Office of the Tariff Commission said, “which seriously infringes on China’s legitimate rights and interests, seriously damages the rules-based multilateral trading system, and seriously impacts the stability of the global economic order.”
The office said China urges the U.S. to cancel its tariffs against China and properly resolve differences through “equal dialogue on the basis of mutual respect.”
Treasury Secretary Scott Bessent told Fox Business after China’s announcement that it was unfortunate the Chinese did not want to negotiate with the U.S.
“They have the most imbalanced economy in the history of the modern world,” Bessent said, “and I can tell you that this escalation is a loser for them.”
The RV industry imports many products from China but is not a major exporter to China. Overall, the U.S. imported $438.9 billion of Chinese goods in 2024 while exporting $143.5 billion of goods.
China was not the only country to issue retaliatory tariffs Thursday. The European Union voted to approve tariffs on about $22 billion Euro worth of U.S. products, including soybeans, motorcycles and orange juice. The first group of EU tariffs will begin April 15, with a second group following on May 15.
As stock markets in Asia, Europe and the U.S. generally opened lower again Thursday morning, President Donald Trump posted online, “Be cool! Everything is going to work out well. The USA will be bigger and better than ever before.”
Shortly later, he posted that this is a great time to buy, referencing the stock markets. U.S. markets rallied into positive territory shortly after the post.
