China announced Friday that it will impose a 34% tariff on imports of all US products beginning April 10, part of a flurry of retaliatory measures following U.S. President Donald Trump’s “Liberation Day” slate of double-digit tariffs. The new tariff matches the rate of the US “reciprocal” tariff of 34% on Chinese exports that Trump ordered this week. The Commerce Ministry in Beijing also said it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.
The Chinese government will also add 27 U.S. companies to lists of firms subject to trade sanctions or export controls and has filed a lawsuit with the World Trade Organization over the tariffs issue. Mr Trump’s sweeping tariffs, announced in a fiery speech, have rattled global markets, triggering sell-offs in Asian and European stock exchanges.
The Dow Jones Industrial Average plunged more than 700 points in early trading on Friday, while the Nasdaq and S&P 500 also suffered sharp losses.
Investors fear an escalating trade war between the world’s two largest economies could drive up prices for U.S. consumers and disrupt global supply chains.
The White House has defended the tariffs as a necessary move to counter China’s “economic aggression” and force Beijing into a fairer trade relationship. However, business groups and lawmakers from both parties have warned that the measures could backfire, particularly as China tightens its grip on critical resources like rare earths.
With tensions rising, analysts are now watching to see whether Beijing will further escalate its response or seek negotiations to avoid a full-scale trade war.
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