China’s measures come after the US introduced an extra 34% tariff on Chinese goods, taking the total tariff to 54%, as per the report. Trump also shut down a loophole that had been letting China’s low-value packages into the US without paying customs duties, reported Reuters.
China Strikes Back with 34% Tariffs on US Goods
Beginning April 10, 2025, China will slap a massive 34% tariff on all American products to add to the existing tariffs of 10%-15% on American agricultural products, energy, and agricultural machinery, according to the report. This is part of China’s overall plan to attack back the American tariffs.
The new Chinese tariffs are set to target a broad spectrum of US exports, such as soybeans, oilseeds, electrical equipment, and even medical devices such as MRIs, as per Reuters.
According to Reuters, Chinese customs immediately suspended imports of sorghum from the United States and inbound shipments of poultry and bone meal from three American companies.
American exports to China in 2024 included more than $13 billion worth of soybeans and grains, $15 billion of electrical equipment, and almost $15 billion of different fuels, as per the report.Director of advisory services at IKON Commodities in Sydney, Ole Houe said, “With 34% tariff it will not be possible for U.S. agricultural products to enter China. It is an opportunity for other exporters like Brazil and Australia to increase their market share in China,” quoted Reuters.
China Expands Export Controls
Apart from the tariffs, China has also imposed controls on exports of medium and heavy rare-earths like samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium to the United States, which was effective from April 4, reported Reuters.
A Widening List of US Targets
China’s countermeasure also involves adding 16 US entities to its export control list, which does not allow exports of dual-use items to the affected firms, reported Reuters. The affected include 15 companies in industries including defence and aerospace, and the non-profit group Coalition For A Prosperous America, which has advocated for the US trade policy against China, as per the report.
While, 11 US entities were added to the “unreliable entity” list, including Skydio Inc and BRINC Drones, according to Reuters.
China also launched an anti-dumping probe into imports of some medical CT tubes from the United States and India, and also an investigation into Dupont China Group, a subsidiary of the US firm DuPont, reported Reuters.
Mercator Institute for China Studies’ lead analyst for the economy, Jacob Gunter said, “The application of the export controls on these key materials plus some of these additions to the unreliable entity list reflects China’s growing tool-kit to retaliate in trade wars,” quoted Reuters.
FAQs
What did China do in response to US tariffs?
China retaliated by imposing a 34% tariff on all American goods and restricting exports of critical rare-earth elements to the US, reported Reuters.
When will China’s tariffs be implemented?
China’s 34% tariff on US goods will be implemented on April 10, 2025, reported Reuters.
