China retaliated against new US tariffs with a slew of measures — including levies on all American imports and export controls on rare earths — delivering on a promise to strike back after President Donald Trump imposed duties and escalating a trade fight.
Beijing will impose a 34% tariff on all imports from the US starting April 10, matching the level of Trump’s so-called reciprocal tariffs on the world’s second-largest economy.
Chinese authorities also said they will immediately restrict exports of seven types of rare earths, start an anti-dumping probe into medical CT X-ray tubes from the US and India, and halt imports of poultry products from two American companies. Additionally, it’s adding 11 American defense companies to an unreliable entity list, and imposing export controls on 16 US firms.
China’s measures followed Trump’s announcement of reciprocal tariffs on global trade partners. The latest US duties will levies on nearly all Chinese products to at least 54%, a move that could cripple Chinese exports to the US.
Tensions between Washington and Beijing have worsened since Trump returned to the White House in January. Notably, the US president has yet to speak with his Chinese counterpart more than two months after his inauguration. They are also locked in a stalemate over China’s alleged role in the flow of fentanyl into America, which Trump cited as a reason for the previous two rounds of tariffs.
Before Wednesday’s announcement, the tariff imbalance between the US and China was stark: American duties on Chinese goods towered over the tariffs China charges the US. China’s average tariff on US goods stood at 17.8%, less than the 32.8% the US charged on Chinese goods, according to a Bloomberg Economics analysis.
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Last year, China imported almost US$164 billion ($219.13 billion) of goods from the US, the lowest amount in four years.
“The US action does not abide by international trade rules, severely undermines China’s legitimate and lawful rights and interests, and is typical unilateral bullying,” the Finance Ministry said in a statement announcing the 34% tariffs.
The economic conflict between the two governments has spilled over to private companies in both countries. Chinese officials have pushed back against Walmart Inc.’s efforts to pressure Chinese suppliers to cut prices to offset Trump’s tariffs. Hong Kong tycoon Li Ka-shing attracted Beijing’s ire by agreeing to sell his company’s ports in Panama to appease Trump.
Trump justified his new tariffs as a fair way to match the barriers that other countries enact on US firms and goods. His administration has also accused China of erecting non-tariff barriers that disadvantage US exports and companies, complaints that were laid out in an annual report published by the USTR this week.
