Beijing, Brussels, Washington —  The global trade landscape grew more volatile on Wednesday as China imposed steep retaliatory tariffs on American goods, and the European Union announced its own countermeasures against the United States. These moves come in response to a fresh round of tariffs introduced by US President Donald Trump, deepening trade hostilities among the world’s top economies.

China’s State Council Tariff Commission declared new levies of up to 84% on a wide range of American imports. The action mirrors the United States’ earlier tariff increase, which raised total duties on Chinese products to over 104%, further escalating an already intense trade standoff.

In a statement, Beijing condemned Washington’s actions, calling the latest US tariffs a “serious violation of international trade norms” and a “deliberate provocation that undermines global market stability”.

The Chinese government also announced export controls targeting a dozen US firms, banning the supply of dual-use technologies—products that can be used for both civilian and military purposes. Additionally, six more American companies were added to China’s “unreliable entity list”, effectively barring them from conducting business or making investments within Chinese borders.

As tensions mounted, the European Union joined the fray, revealing plans to enforce retaliatory tariffs on American products beginning next week. The EU’s decision is a direct response to the US increase in tariffs on imported steel and aluminium announced last month.

“These measures are not our preferred choice,” said an EU Commission spokesperson. “But they are necessary to protect European industries and uphold the principles of fair trade.”

Global markets reacted sharply to the escalating tensions. Stock indices in Asia and Europe slumped, while Wall Street opened on mixed footing amid investor uncertainty.

Some financial experts expressed alarm at the scale and intensity of the standoff.

“With nearly half the global economy now engaged in a tit-for-tat tariff war, the ripple effects on supply chains and consumer prices could be massive,” said Peter Boockvar, Chief Investment Officer at Bleakley Financial Group. “This is a dangerous moment for global commerce.”

Despite the growing international backlash, US officials defended the administration’s strategy. Treasury Secretary Scott Bessent criticised China’s response and insisted that the US was simply seeking a fairer trade environment.

“They have one of the most unbalanced trade economies in modern history,” Bessent said in a television interview. “We’re taking action because we’ve been on the losing end of this equation for far too long.”

Meanwhile, China has filed a formal complaint with the World Trade Organisation (WTO) over the US tariffs, escalating the dispute to a multilateral stage.

With diplomatic negotiations stalled and retaliatory measures intensifying, there is no immediate resolution in sight. The global business community is now bracing for further disruption as the trade war threatens to extend its reach across multiple sectors and continents.