China hits back at Donald Trump with 84% tariffs in retaliation to 'Liberation Day'

China has hit back at the 'Liberation Day' tariffs placed on them by President Donald Trump.

The nation has chosen to place retaliatory tariffs of 84 percent on US goods, as the worldwide trade war continues. This move comes after the US leader imposed 104 percent tariffs on China, which came into force at midnight today (9 April).

Trade war between China and US explained

While it was initially announced by Trump that the US would impose a tariff of 54 percent on China, considerably more than the majority of other countries, it was confirmed by the White House yesterday (8 April) that an extra 50 percent would be added.

It means that the Asian nation stands head and shoulders above the rest of the world when it comes to US tariffs.

China had previously announced a tariff of 34 percent on US goods, resulting in the eye-watering tariff of 104 percent.

The retaliatory tariffs between the two nations signals that the two largest economies in the world are in the midst of a trade war, which could have catastrophic effects on the world's economy.

What has happened with the stock market?

Already, the trade market has taken a nosedive unlike anything seen before, as the US oversaw the worst two consecutive days in the history of the stock market, trumping the Great Depression, Black Monday, the 2008 financial crisis, and even COVID.

Approximately $6.6 trillion was wiped off the market over these two days, with the full list of tariffs sending the market into crisis.

Billionaires were also hit, with 500 of the world's richest billionaires losing about $329 billion (£257 billion) on Friday.

Trump had doubled down on China's tariffs (Kevin Dietsch/Getty Images)

China's response to latest US tariffs

While many countries backed down to the US tariffs, with Prime Minister Keir Starmer still aiming to strike a trade deal with Trump and co, China are ready to stand their ground.

China's commerce ministry said in a statement: "The US threat to escalate tariffs on China is a mistake on top of a mistake.

"China will never accept it. If the US insists on its own way, China will fight to the end."

Speaking to the World Trade Organisation, the Chinese submission said that the US President's decision would ultimately negatively affect global trade, just hours before imposing 84 percent tariffs themselves.

It said to the WTO: “The situation has dangerously escalated… As one of the affected members, China expresses grave concern and firm opposition to this reckless move.”

China said in a WTO meeting about trade in goods that it would ultimately harm everyone, including the US: “Reciprocal tariff is not - and will never be - a cure for trade imbalances. Instead, they will backfire, harming the US itself.”