US-China trade war intensifies as Beijing’s tariffs come into effect after Trump pause

China’s 84% tariffs against US products comes into force amid market relief at Donald Trump’s move to pause steep reciprocal tariffs around the world

President Donald Trump reads a newspaper with the headline "World War Fee," and "China: Yeah?" as he arrives at Trump National Golf Club, Saturday, April 5, 2025, in Jupiter, Fla. (AP Photo/Alex Brandon)

Donald Trump’s trade war with China entered a new phase on Thursday, as Beijing’s 84% retaliatory tariffs came into effect hours after the US president announced a pause of steep reciprocal tariffs on dozens of countries except China.

Markets rebounded after Trump announced the sudden pause, after the most volatile episode in financial markets since the pandemic.