China retaliates with 34% tariff on US goods after Trump Tariff
China has declared a new 34 percent tariff on all US goods, set to take effect on April 10, as a direct response to President Donald Trump’s recent imposition of trade duties. The declaration issued by China’s Finance Ministry on Friday signifies a notable intensification in the protracted trade conflict between the globe’s two largest economies. Simultaneously, China is set to implement export restrictions on a range of essential medium and heavy rare-earth elements, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, effective April 4. These rare-earth elements are essential for advanced manufacturing and defense technologies.
According to a statement from China’s Commerce Ministry, the government’s enforcement of export controls on specific items is aimed at enhancing the protection of national security and interests, as well as fulfilling international commitments, including those related to non-proliferation. Beijing has expanded its “unreliable entity” list by incorporating 11 foreign entities, thereby enabling the imposition of punitive measures against them. The action indicates that China is prepared to leverage regulatory frameworks and economic strategies to counteract US influence.
The State Council Tariff Commission of China has specified that shipments currently in transit will remain exempt from the newly imposed tariffs. “If the goods are dispatched from the point of origin prior to 12:01 on April 10, 2025, and are imported between 12:01 on April 10, 2025, and 24:00 on May 13, 2025, the supplementary tariffs outlined in this announcement will not be imposed,” it stated.
Tensions are on the rise following Trump’s increase in tariffs. This action follows Beijing’s recent call for Washington to retract its latest tariffs, accompanied by a warning of potential countermeasures to protect its own rights and interests. Earlier this week, Trump declared that Chinese imports would incur a 34 percent tariff, in addition to a 20 percent levy established earlier this year, resulting in a cumulative increase of 54 percent. This is in strong accordance with the 60 percent tariff he proposed during his presidential campaign. A baseline tariff of 10 per cent on nearly all imports, encompassing goods from China and other nations, is scheduled to be implemented this Saturday. The elevated reciprocal tariffs targeting China are set to commence on April 9.
President Trump has enacted an executive order that effectively eliminates the “de minimis” loophole, a regulation permitting low-value shipments from China and Hong Kong to enter the United States without incurring duties. The impending closure is anticipated to have a considerable effect on e-commerce shipments and small enterprises dependent on cross-border logistics. The recent escalation occurs as US trade officials reassess China’s adherence to the 2020 “Phase 1” trade agreement. According to the terms of the agreement, Beijing pledged to boost imports from the United States by $200 billion over a span of two years. Nonetheless, China has repeatedly failed to meet those objectives, attributing its shortcomings to the Covid-19 pandemic and disruptions in global supply chains.
In the face of escalating tensions, the economic connections between the two nations continue to be profoundly established. Data from Chinese customs indicates that in 2017, prior to the onset of the trade war, China imported goods from the United States valued at $154 billion. The figure increased to $164 billion in 2024, indicating persistent trade activity despite ongoing policy conflicts.
