China announced on 4 April that it would introduce retaliatory tariffs of 34% on all goods imported from the United States, starting 10 April, delivering on its warning following President Donald Trump’s latest escalation of an ongoing global trade conflict, CNN reported.
Just two days earlier, President Trump unveiled a 34% tariff on all Chinese imports into the United States, a move expected to significantly alter bilateral trade relations and heighten tensions between the world’s two leading economies.
In a formal statement, China’s State Council Tariff Commission criticised the US action, stating: ‘Such conduct by the United States contravenes established international trade norms, seriously infringes upon China’s rightful interests, and represents a clear instance of unilateral intimidation.’
For more than 30 years, the United States has consistently recorded a trade deficit with China – its most pronounced bilateral trade imbalance during this period. Although China is a key market for American exports, the scale of Chinese shipments to the US far exceeds US exports to China – by a ratio of three to one in 2024.
Since returning to office in January, President Trump has introduced two rounds of additional tariffs, each at 10%, on all Chinese imports. When added to existing levies, the overall tariff burden on Chinese goods entering the US now exceeds 54%.
China’s latest retaliatory move marks a broader and more forceful approach than its earlier responses. ‘This represents a notable intensification of China’s countermeasures’, noted Leah Fahy, a China specialist at Capital Economics. ‘President Xi appears confident that the Chinese economy is resilient enough to absorb whatever measures Trump implements next.’
China has further intensified its response by placing 11 US-based firms, including drone manufacturers, on its ‘unreliable entity list’. Simultaneously, it has imposed export restrictions on 16 American companies, effectively blocking their access to Chinese dual-use technologies and materials.
Moreover, Beijing introduced fresh export curbs targeting the United States, specifically on seven rare-earth elements, including samarium, gadolinium, and terbium, all of which are critical for high-tech and defence-related industries.
US financial markets experienced a sharp downturn on Friday following China’s announcement of its retaliatory measures. The Dow Jones Industrial Average dropped over 1,000 points, marking a decline of 2.7%. The S&P 500 slid by more than 3%, while the technology-focused Nasdaq Composite fell by 3.5%.
