Newsweek – China’s finance ministry said it would impose a 34 percent tariff on all U.S. goods starting from midnight on April 10, after President Donald TrumpΒ announced new tariffs on the Asian giant.
The ministry said in a release that China “urges the US to immediately lift unilateral tariffs and resolve trade differences through consultation on an equal, respectful and mutually beneficial basis.”
Why it Matters
A trade war between the world’s two largest economies carries a substantial risk to the global economy,Β which could fall into recession as a result, some experts have warned.
Stock markets are plunging in anticipation of the economic pain that the trade warβwhich extends beyond the U.S.-China relationship to most of America’s trading partnersβcould bring about.
What to Know
Trump has put a 34 percent tariff on all Chinese imports under his plan for “reciprocal” measures againstΒ America’s trading partners. This tariff is additional to other tariffs already in place against Chinese imports.
He said Chinese trade barriers, including tariffs, equated to a 67 percent levy against the U.S., arguing, therefore, that the U.S. was applying a “discounted” rate.
Federal data shows the U.S. total goods trade with China was worth an estimated $582.4 billion in 2024.
U.S. imports from China far outweigh exports to it, the kind of trade deficit that sits in the center of Trump’s criticism of existing American trading relationships.
China Increases Rare Earths Export Controls
The Commerce Ministry in Beijing said in a notice on Friday morning that it will also impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.
Included in the list of minerals subject to controls was samarium and its compounds, which are used in aerospace manufacturing and the defense sector. Another element called gadolinium is used in MRI scans.
China’s Trade Sanctions or Export Controls
China’s customs administration said it had suspended imports of chicken from two U.S. suppliers, Mountaire Farms of Delaware and Coastal Processing.
It said Chinese customs had repeatedly detected furazolidone, a drug banned in China, in shipments from those companies.
Additionally, the Chinese government said it has added 27 firms to lists of companies subject to trade sanctions or export controls.
Among them, 16 are subject to a ban on the export of “dual-use” goods. High Point Aerotechnologies, a defense tech company, and Universal Logistics Holding, a publicly traded transportation and logistics company, were among those listed.
Beijing also announced it filed a lawsuit with the World Trade Organization over the tariffs issue.
What People Are Saying
The Chinese finance ministryΒ accused the US of “typical unilateral bullying” over the tariffs, arguing it “not only harms the US itself, but also endangers global economic development and the stability of the production and supply chain.”
President Trump said in a Truth Social post:Β “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”
Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters:Β “China’s aggressive countermove to U.S. tariffs all but confirms we are heading towards a global trade war; a war that has no winners and which will hurt economic growth and demand for key commodities such as crude oil and refined products.”
What’s Next
Global stock markets have suffered sharp losses as the trade war unfolds over fears of a recession. China’s forceful retaliation and Trump’s sharp criticism that they “played it wrong” suggests a deal to ease tariffs and other trade barriers is some way off.
This article includes reporting by The Associated Press.
