In a significant escalation of trade tensions, China has announced a 34% tariff on all U.S. imports, effective April 10, 2025, in retaliation to U.S. tariffs imposed by President Donald Trump.
Retaliatory Measures and Tariffs
China’s Commerce Ministry stated that this new tariff mirrors the U.S. „reciprocal” tariff of 34% on Chinese exports introduced earlier this week. This move is part of a broader set of retaliatory measures following Trump’s so-called “Liberation Day” tariff slate, which includes double-digit tariffs on various goods.
Impact on Rare Earth Exports
In addition to the new tariff, China will implement stricter export controls on rare earth elements, critical components for high-tech products such as computer chips and electric vehicle batteries. Notable minerals affected include samarium, used in aerospace manufacturing, and gadolinium, utilized in MRI scans.
Suspension of U.S. Imports
China’s customs administration has also suspended imports of chicken from certain U.S. suppliers after discovering furazolidone, a banned drug, in shipments. Additionally, concerns over high levels of mold in sorghum and salmonella in poultry meat were reported, affecting specific exporters such as C&D Inc. and four poultry companies.
Trade Sanctions and Legal Actions
The Chinese government has added 27 companies to its list of those subject to trade sanctions or export controls. Among these, 16 face a ban on the export of “dual-use” goods, which could be utilized for both civilian and military applications. Notable firms include High Point Aerotechnologies and Universal Logistics Holding.
Moreover, China has initiated a lawsuit with the World Trade Organization (WTO), arguing that the U.S. tariffs violate international trade rules and undermine the multilateral trading system.
Ongoing Trade Friction
In February, China had already imposed a 15% tariff on U.S. imports of coal and liquefied natural gas, alongside a 10% tariff on crude oil, agricultural machinery, and large-engine cars. The latest tariffs are expected to impact a wide array of products made in the U.S.
Broader Context of U.S.-China Relations
While trade relations have soured significantly, there are signs of diplomatic engagement, as U.S. and Chinese military officials recently met to discuss military safety on the seas for the first time since Trump took office. These discussions, held in Shanghai, were aimed at reducing potential conflicts between the two nations.
