China retaliates with tariff that matches Trump’s
China has responded to Donald Trump’s new trade tariffs with its own charges on US goods. After Trump announced the imposition of an additional 34 percent charge on Chinese imports into the US, China has announced a levy at the same rate for US goods shipped to China.
It has also barred 11 US companies from trading in the country, added 16 more to an export controls list, applied new restrictions to rare earth mineral exports, filed a complaint with the World Trade Organization (WTO), and started investigations into imports of American medical equipment.
In a statement announcing the new tariff, China’s finance ministry declared that the US tariff on Chinese goods “seriously undermines China’s legitimate rights and interests,” and called it a “typical unilateral bullying practice.”
Trump announced his latest levy on Chinese imports as part of new tariff rates that affect every country the US trades with, including a few uninhabited islands. It followed two separate 10 percent tariffs on China from earlier in the year, bringing the US’s total tariff on Chinese goods to 54 percent. He also signed an executive order ending the “de minimis” exemption for packages valued below $800, which could be a death blow for Chinese retailers like Shein and Temu.
“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,” the statement concludes. The Chinese levy will go into effect on April 10th, one day after the US’s new tariff starts to apply.
China has also imposed strict limits on the exports of some rare earth elements that are mined almost exclusively in China and used in electric vehicles, weapons, and other tech.
It’s also launching investigations into exports of X-ray tubes from America and India, amid allegations of “dumping” — when exported goods are sold for less than their domestic price, damaging the local industry. If that sounds oddly specific, bear in mind that the US dominates the international medical device trade.
The country has also barred 11 American businesses accused of “military and technological cooperation with Taiwan” from importing to, exporting from, or investing in China, adding them to its “Unreliable Entity List.” The new additions, mostly made up of drone and defense companies, include drone manufacturer Skydio, which started out making consumer drones but pivoted entirely to enterprise in 2023.
A further 16 US companies have been placed under export controls, banning the export of dual-use items – anything that can be used for both civilian and military purposes – to those companies. The BBC reports that a further six companies have been prohibited from shipping their goods to China because of “food safety concerns.”
China’s Commerce Ministry also says that it has filed a new charge within the WTO’s dispute settlement system, claiming that Trump’s reciprocal tariffs violate WTO rules. China initially lodged a complaint with the WTO in early February after Trump’s first 10 percent tariff, and updated it following the second round in March, but the WTO only describes the complaint as “In consultations.”