2025-04-11
China said it would not necessarily respond to every further US tariff increase with another tariff of its own, a sign that Beijing believes the trade war has already pushed American goods out of reach for much of the Chinese market.
The message reflects a shift in tone as the dispute between the world’s two largest economies keeps intensifying. While the statement suggests China may look at other economic measures instead of automatically matching each new move from Washington, the immediate context is a tariff regime that has already become extreme by normal trade standards.
According to CNBC, the Trump administration told the outlet that the effective US tariff rate on Chinese imports had risen to 145%. That figure helps explain why Beijing would argue that another round of retaliatory tariffs may no longer be the most useful response. Once the cost of trade reaches that level, the practical question is less about balancing one tariff against another and more about what economic leverage remains.
China’s position also points to a wider strategic calculation. If American products are already too expensive for Chinese buyers in many categories, adding another tariff layer may have diminishing returns. That does not mean Beijing is backing away from pressure. It means the toolkit may be changing.
The dispute has moved far beyond a simple back-and-forth on customs duties. With tariff rates this high, both countries are effectively using access to their own markets as a negotiating instrument. Chinese officials have made clear that the response could take other forms, which may include non-tariff economic measures. The supplied evidence does not specify those measures, so the safest conclusion is that the response may shift rather than disappear.
The timing matters because the tariffs are being imposed while both governments are trying to position themselves as unwilling to concede first. For Washington, the tariff strategy is part of a broader effort to force concessions from Beijing. For China, refusing to answer every tariff with a tariff may be a way to avoid being trapped in a mechanical escalation while reserving more targeted options.
Even so, the new tariff level is already high enough to distort trade flows and corporate planning. Businesses that depend on cross-border supply chains are being forced to reassess costs, pricing and inventory. That is especially true when a 145% effective tariff rate is no longer a theoretical threat but a live operating condition.
The broader implication is that the trade war has entered a phase in which symbolism and economic reality are pulling in different directions. Publicly, both sides want to show resolve. Practically, both sides are also trying to avoid losing control of the damage. China’s latest statement suggests it sees further tit-for-tat tariff moves as less meaningful than other forms of pressure, even if the confrontation itself is far from over.
