The U.S.-China trade war escalated sharply this week as Beijing issued a white paper denouncing Washington’s growing protectionist policies, just hours after the White House imposed a sweeping 104% tariff on Chinese goods. The move has reignited tensions that have roiled global markets since 2018.
On Wednesday, China’s State Council Information Office released a document titled “China’s Position on Some Issues Concerning China-US Economic and Trade Relations.” The paper strongly criticized the United States for imposing tariffs on over $500 billion worth of Chinese exports, accusing it of “unilateralism and protectionism” that undermines multilateral trade cooperation.
According to China’s state media agency Xinhua, the white paper was issued to “clarify facts” about trade friction and outline Beijing’s stance on key economic disputes. The paper argues that U.S. measures have severely disrupted normal bilateral trade, hurt global supply chains, and defied principles of market economy and international norms.
This follows a fresh announcement by the White House on Tuesday, where Press Secretary Karoline Leavitt declared the new tariffs would take effect immediately. “When America is punched, it punches back harder,” she said, warning China against further retaliation and signaling a hardline stance on trade policy under the Trump administration.
Leavitt said the tariffs are intended to correct “unfair trade practices” that have hurt American industry and workers, and affirmed that President Trump would remain “gracious” if China chooses to return to the negotiating table.
The Chinese white paper pushed back firmly, claiming that the U.S. has not only levied punitive tariffs, but has also cited unrelated issues — such as the fentanyl crisis — to justify new economic penalties. It noted that average U.S. tariffs on Chinese goods have surged to 42.1%, far above pre-trade war levels.
In response, China has implemented its own tariffs on $23.6 billion worth of U.S. exports, including coal, crude oil, and automobiles. Beijing insists that while it has taken “forceful countermeasures” to protect its national interests, it remains committed to resolving disputes through dialogue.
The white paper also revealed the toll the conflict has taken on trade volumes. Since 2021, U.S. liquefied natural gas (LNG) exports to China have dropped by 59.8%, and vehicle exports have declined by 33%.
Highlighting the need for renewed cooperation, the document emphasized that U.S.-China economic ties are “mutually beneficial and win-win in nature.” It urged both countries to respect each other’s core interests and major concerns, and to settle disputes through dialogue rather than confrontation.
“As two major countries with different development stages and economic systems, it is natural to have frictions,” the white paper stated. “But it is crucial to address them through cooperation, not conflict.”
With tensions flaring once again, global markets and industries will be watching closely as the world’s two largest economies attempt to navigate one of their most fraught economic relationships in decades.
