As the United States' sweeping reciprocal tariffs come into effect under President Donald Trump's directive, China has launched a sharp counteroffensive—raising duties, hitting back at American companies, and escalating the matter to the World Trade Organisation (WTO).

In a swift response to Washington's aggressive trade measures, Beijing declared on Wednesday that it will raise tariffs on US imports to as high as 84% starting Thursday—up from the previous rate of 34%. Alongside, the Chinese government submitted a formal complaint to the WTO, warning that these US moves are jeopardizing the foundations of global commerce.

"The United States’ continued escalation is a grave miscalculation. It violates China's legitimate rights and disrupts the multilateral trading order," said China’s Finance Ministry in a statement.

The measures follow the US administration’s implementation of a 104% tariff on Chinese products, part of a broader tariff strategy targeting dozens of countries. The Trump administration’s policy has triggered concerns globally about a widening trade conflict.

In retaliation, China's Ministry of Commerce also unveiled a list of new restrictions on American firms. Twelve companies have been added to China's export control list—including tech firms such as American Photonics and Novotech—who will now be barred from accessing dual-use technologies. Another six US firms, including Shield AI and Sierra Nevada Corporation, have been blacklisted as "unreliable entities," effectively barring them from trade and investment within China.

Beijing made it clear that it does not intend to initiate fresh dialogue with the US, differentiating itself from several other nations that have entered into discussions with Washington to avoid punitive tariffs.

Releasing a white paper on bilateral trade ties, the Chinese government reiterated its stance that the trade deficit claimed by the US is a natural outcome of global economic dynamics, and not necessarily a policy flaw. “The trade relationship between the US and China is fundamentally balanced in nature,” it stated.

China's case at the WTO argues that Washington's “reciprocal tariffs” are destabilizing and unjustified. In its filing, Beijing expressed “serious concern” and stated that such policies are self-defeating, warning that the American economy would also feel the impact.

The Ministry of Commerce in China emphasized that the nation remains ready and able to respond. “If the United States persists in intensifying its economic and trade restrictions, China will not hesitate to act. We are fully prepared to take strong, necessary countermeasures,” the ministry stated.

Earlier steps by Beijing included the imposition of a 34% blanket tariff on all US imports and fresh export curbs on key rare earth minerals. These came after Trump’s announcement of additional 50% tariffs last week, declaring that trade negotiations with China were officially terminated.

The ongoing tension stems from America’s large trade imbalance with China. According to official US figures, in 2024, imports from China amounted to roughly $440 billion—almost triple the $145 billion in American exports to China.