In a dramatic spike in trade hostilities, China on Friday introduced sweeping retaliatory actions against the United States, imposing 34% tariffs on all US products. The action comes after US President Donald Trump on Wednesday issued a new wave of 34% tariffs on Chinese imports in addition to the previous 20% tariffs launched in two tranches. This raises the overall US tariff rate on China during Trump’s tenure to 54%, in addition to the industry-specific tariffs that had been levied by the Biden administration before.
China’s new tariffs, as per Xinhua News Agency, will come into force on April 10. Contrary to the US measures that exempted sectors such as semiconductors and pharmaceuticals, China’s tariffs have no exemptions. In addition to tariffs, Beijing levied a raft of non-tariff countermeasures.
Among the most important steps, China placed 11 US companies on its “unreliable entities” list, essentially excluding them from doing business in or with China. It also strengthened export restrictions on rare earth minerals essential to electric vehicles and defense technology, including neodymium and dysprosium. Importation of US chicken from certain producers was also prohibited.
These actions follow two earlier rounds of Chinese reprisal. In February, Beijing placed 15% duties on US coal and liquefied natural gas (LNG), and 10% duties on crude oil, agricultural machinery, and certain auto imports. Export bans were also levied on essential minerals, such as tungsten and molybdenum, and technology behemoths such as Google faced regulatory probes.
In March, China levied new duties: 15% on US chicken, wheat, corn, and cotton, and 10% on soybeans, pork, dairy, and seafood. It also added 25 more US firms to export and investment restrictions.
Experts describe this escalating trade war as a sign of the two powers shifting towards a more aggressive economic posture.
