China has retaliated against President Trump's recent tariff plan by imposing a 34% tariff on US imports, marking the latest escalation in an ongoing trade war between the two nations.
The new tariffs will take effect on April 10, just days after Trump unveiled his own set of steep tariffs on Chinese goods.
The Chinese government's response is part of a broader effort to match the US tariffs with similar measures, showing that Beijing has no intention of backing down.
The country's Finance Ministry announced the 34% tariffs on US goods, following Trump's plan for reciprocal tariffs.
Additionally, China's Ministry of Commerce has added 11 American companies to its list of "unreliable entities," effectively blocking them from operating in China, NY Times said.
China also restricted exports of rare earth metals, essential for various industries, including technology and defense.
In its statement, China's Ministry of Commerce strongly criticized the U.S. tariff plan, calling it a violation of international trade rules.
"This gravely violates World Trade Organization rules and undermines the rules-based multilateral trading system," the ministry said, emphasizing China's right to defend its interests.
#China will impose additional 34-percent #tariffs on all products imported from the United States starting from April 10, the Customs Tariff Commission of the State Council announced Friday. https://t.co/ld6OmU81yy
— Chinese Embassy in US (@ChineseEmbinUS) April 4, 2025
🔗https://t.co/nvHrHItd2Y pic.twitter.com/bh01imdTNx
US-China Trade War Intensifies as China Imposes Retaliatory Tariffs
The new tariffs, which cover a broad range of US products, are expected to impact industries such as technology, agriculture, and pharmaceuticals.
While the US bought $147.8 billion in goods from China last year, China sold a significantly higher amount, $426.9 billion, making the trade balance tilted in China's favor.
As a result, the Chinese tariffs target fewer goods but still represent a considerable blow to American exporters.
This move has caused alarm in US financial markets. Following China's announcement, the S&P 500 dropped by 6%, pushing it closer to a bear market. Investors are concerned that the ongoing trade war could harm both economies, especially if tensions continue to rise.
According to FoxBusiness, Trump responded to the retaliation by dismissing China's actions, posting on Truth Social: "CHINA PLAYED IT WRONG, THEY PANICKED — THE ONE THING THEY CANNOT AFFORD TO DO!" He has previously argued that his tariff policy is crucial for protecting American jobs and reviving US manufacturing.
Experts have warned that China is prepared to withstand this trade conflict longer than the US might expect.
"Beijing can no longer maintain the fiction that diplomatic engagement with the Trump administration will prevent a full-scale trade war," said Jude Blanchette, director of the RAND China Research Center.
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