China Strikes Back with 34% Tariffs on US Goods in Escalating Trade War
The trade war between the United States and China has taken a sharp turn. China has officially announced that it will impose a massive 34% tariff on all US imports starting April 10. This move comes as a direct response to President Donald Trump's latest escalation, where he slapped an additional 34% tariff on Chinese goods entering the US. This back-and-forth has created significant tensions between the world's two largest economies, sending shockwaves through global markets.
China's State Council Tariff Commission did not mince words in its response. It called the US tariffs a violation of international trade norms, accusing Washington of engaging in unilateral bullying tactics. This latest retaliation by China is broader and more aggressive than previous responses, affecting a wide range of American goods and businesses.
Since returning to the White House, Trump has already implemented two rounds of tariffs at 10% on all Chinese imports, claiming that the measures are necessary to curb illicit fentanyl shipments from China. With this latest increase, Chinese goods entering the US will now be subject to a staggering 54% tariff, a number that far exceeds what most analysts had predicted.
Also Read:- I Scored ANA First Class to Japan for Just 61K Points — Here’s How You Can Too!
- AI’s Role in Energy Management: From Strain to Solution
In a further blow to American businesses, China has expanded its economic countermeasures. It has added 11 US companies, including major drone manufacturers, to its "unreliable entity list," restricting their operations in the country. Additionally, export controls have been placed on 16 American firms, preventing them from accessing crucial Chinese materials. To top it off, China has launched anti-dumping investigations into imported medical CT X-ray tubes from both the US and India. Perhaps most concerning for high-tech industries, Beijing has also announced restrictions on the export of seven rare-earth minerals vital to manufacturing, including samarium, gadolinium, and terbium.
The timing of China's announcement couldn't be more strategic. With a major public holiday underway in the country, millions of Chinese citizens are watching as their government takes a firm stand against the US. Meanwhile, the financial markets are feeling the brunt of this escalation. US stock futures plunged after China's announcement, with Dow futures dropping by 1,000 points and the S&P 500 and Nasdaq each sliding over 2%. European and UK markets are also feeling the heat, witnessing their worst performances in years.
For businesses relying on Chinese supply chains, this situation presents a logistical nightmare. Not only do they have to deal with heightened tariffs on imports from China, but Trump's broader trade policies have also affected goods from other Asian countries. Many companies now find themselves scrambling to navigate these uncertain economic waters, with price hikes likely to hit consumers in the coming weeks.
At the same time, China's own economy isn't in the strongest position. With domestic consumption already weak, the government has been working overtime to stimulate economic activity. This ongoing trade war only adds to the country's financial pressures, raising concerns about potential long-term effects on global trade.
What happens next? That remains the big question. If both sides continue escalating tariffs, the economic impact could be severe. Fitch Ratings has already warned that this situation could push both the US and global economies into a recession. As businesses and consumers brace for impact, one thing is certain—this trade war is far from over.
Read More:
0 Comments