China 34% Tariff on U.S. Goods Sparks Major Trade Clash
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APRIL 04,2025
BANGKOK (AP) – In a bold and sweeping move, China has announced a 34% tariff on all U.S. imports, effective April 10, escalating the ongoing trade tensions between the world’s two largest economies. The move is a direct response to the U.S. “Liberation Day” tariffs introduced by President Donald Trump, which included a matching 34% tariff on Chinese exports.
China 34% Tariff on U.S. Goods Triggers Broad Retaliation Measures
In a detailed statement issued Friday, China’s Ministry of Commerce confirmed not only the broad new import tariff but also a host of additional retaliatory measures, signaling a significant hardening of its trade stance.
RELATED STORY: Trade War Escalates: China Strikes Back with 15% Tariffs on U.S. Farm Exports!
Among the most notable actions:
- Export restrictions on rare earth materials, crucial for manufacturing semiconductors, electric vehicle batteries, military equipment, and medical imaging technologies.
- This includes samarium, widely used in aerospace and defense, and gadolinium, a key component in MRI scans.
- Suspension of chicken imports from certain U.S. companies due to the detection of furazolidone, a banned substance in China, as well as contamination issues involving sorghum and salmonella in poultry.
- Affected companies include C&D Inc. and four U.S.-based poultry exporters.
- New trade sanctions on 27 U.S. firms, with 16 companies now banned from exporting dual-use goods—items that can serve both commercial and military functions.
- Notable names include High Point Aerotechnologies and Universal Logistics Holdings.
China Takes the Fight to the WTO
In a pointed legal counterattack, China has filed a lawsuit with the World Trade Organization (WTO), accusing the U.S. of violating international trade rules and disrupting the global economic order.
“The United States’ imposition of so-called ‘reciprocal tariffs’ seriously violates WTO rules,” China’s Commerce Ministry said in a strongly worded statement. “It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order.”
Additional Measures Signal Deepening Dispute
- Anti-monopoly investigation launched against DuPont China Group Co., a subsidiary of the global chemical giant DuPont.
- Anti-dumping probe initiated into X-ray and CT scanner components imported from both the U.S. and India.
- February tariffs included:
- 15% on coal and LNG (liquefied natural gas) from the U.S.
- 10% on crude oil, agricultural equipment, and large-engine vehicles.
China 34% tariff on U.S. goods has the latest round of tariffs will apply across the board to all American-made products, according to the State Council Tariff Commission, an arm of China’s Ministry of Finance.
U.S.-China Tensions Escalate, But Military Dialogue Offers a Glimmer of Stability
Despite the trade standoff, diplomatic and military dialogue continues. This week, U.S. and Chinese military officials met in Shanghai, marking the first official contact since President Trump took office. The two-day meeting focused on reducing maritime risks and maintaining regional security in the Indo-Pacific.
What China 34% Tariff on U.S. Goods Means for Global Markets
This announcement has broad implications for the global supply chain, American exporters, and investors worldwide. A 34% tariff on all U.S. goods entering China will likely:
- Disrupt agricultural and manufacturing sectors.
- Push up consumer prices in China.
- Trigger further volatility in global stock and commodities markets.
- Accelerate efforts by both countries to diversify their trade partners and secure critical resources.
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