"Based on the lack of respect that China has shown to the World's Markets, l am hereby raising the Tariff charged to China by theUnited States of America to 125%, effective immediately. At somepoint, hopefully in the near future, China will realize that the daysof ripping off the U.S.A., and other Countries, is no longersustainable or acceptable. Conversely, and based on the fact thatmore than 75 Countries have called Representatives of the UnitedStates, including the Departments of Commerce, Treasury, and theUSTR, to negotiate a solution to the subjects being discussedrelative to Trade, Trade Barriers, Tariffs, Currency Manipulation,and Non Monetary Tariffs, and that these Countries have not, at mystrong suggestion, retaliated in any way, shape, or form against theUnited States, I have authorized a 90 day PAUSE, and asubstantially lowered Reciprocal Tariff during this period, of 10%,also effective immediately. Thank you for your attention to thismatter!"  wrote by Trunp.

At about 1 p.m. on April 9, Eastern Time, U.S. President Trump adjusted the tariff policy again, announcing that he would further increase tariffs on China to 125%, while implementing differentiated tariffs. In the next 90 days, all U.S. trading partners will face the same 10% baseline tariff.
The reversal of Trump's tariff policy has caused U.S. stocks, which had previously plummeted for many days, to rise sharply. U.S. bond yields fell and oil prices jumped. Since the Trump administration's round of tariff increases, the stock prices of most Chinese companies have fallen significantly.

Since April, the tariff war between our side and the United States has intensified. Today, on April 10, 2025, Trump, on behalf of the United States, has launched a so-called "divide and rule" tariff strategy, pretending to "exempt" 75 countries that did not resist for 90 days, reducing the reciprocal tariff rate to 10%, but imposing retaliatory tariffs (125%) on China, which insisted on fighting.

Since Trump announced a 125% tariff increase on China, China has also launched a tough counterattack. On April 9, the State Council Tariff Commission issued an announcement that from 12:01 on April 10, 2025, the additional tariff rate stipulated in the "Announcement of the State Council Tariff Commission on the Imposition of Additional Tariffs on Imports Originating in the United States" (Tax Commission Announcement No. 4 of 2025) will be adjusted from 34% to 84%.

The impact of the US's increase in tariffs on Chinese goods on China's exports is multi-layered. In the short term, the most direct impact is that it raises the price of Chinese goods in the US, weakening price competitiveness, especially for traditional manufacturing industries such as textiles, furniture and other low-value-added products, which may cause some orders to be lost to Southeast Asia or Mexico and other countries with lower costs. Export companies are facing the dilemma of profit compression. If they cannot fully pass on the tariff costs to buyers, they will have to cut profits or adjust the supply chain to maintain the market. High-tech industries such as communication equipment and semiconductors are hit by a double blow. Not only are they affected by tariffs, but they are also facing restrictions on technology blockades and export controls, further exacerbating export pressure. At the same time, if the United States imposes tariffs on new energy fields such as electric vehicles and photovoltaic cells, it will hit China's green industry exports, which have grown rapidly in recent years. In order to cope with these challenges, some Chinese companies may circumvent tariffs through re-export trade or overseas factory construction, but this approach also faces risks such as origin review. In the long run, high tariffs will force China's manufacturing industry to transform towards high value-added, promote companies to improve their technical level and brand competitiveness, and accelerate the development of Southeast Asia, the European Union and the "Belt and Road" market, reducing dependence on the single US market. The government may also cushion the impact through policies such as export tax rebates and credit support, and use the domestic demand market to absorb some excess capacity. Overall, the US tariffs will inhibit China's export growth to the US in the short term and increase the pressure on industrial chain relocation, but in the medium and long term, it may prompt China to accelerate industrial upgrading and market diversification, and gradually reduce its dependence on US trade.

The China trade war is another protracted war. What new policies will we come up with to deal with it? Continue to pay attention to the news on China-US tariffs.