In a swift and assertive response to Washington’s latest trade actions, China has imposed a 34% tariff on American imports, signaling a major escalation in the ongoing economic conflict with the United States. The new tariffs, announced by China’s State Council, will take effect from April 10, and come just one day after the Biden successor administration, led by Donald Trump, levied a similar 34% tariff on Chinese goods.
The retaliatory move underscores Beijing’s resolve to stand its ground rather than return to the negotiating table. It also marks one of the most severe trade blows between the world’s two largest economies since the original trade standoff began during Trump’s first term.
Beijing Goes Beyond Tariffs
In addition to the steep tariff, China has implemented a set of broader retaliatory measures, including:
- Export restrictions on critical Chinese goods to 16 American companies
- Suspension of export licenses for six U.S.-linked companies
- Inclusion of 11 more U.S. firms—including drone maker Skydio—on China’s “unreliable entities” list
- New restrictions on exports of rare earth minerals, which are vital for high-tech U.S. industries
These strategic countermeasures indicate that China is preparing for a prolonged standoff, targeting key sectors where the U.S. is highly dependent on Chinese resources.
Read Also: Canada Warns Europe: US Relations ‘Will Never Be the Same Again’ After Trump’s New Tariffs
TikTok, Tech, and Tension
President Trump had earlier floated the possibility of easing tensions if Beijing approved a U.S.-friendly deal concerning TikTok, the popular social media platform. However, China’s response makes it clear that such overtures will not be enough.
Beijing criticized Washington’s tariff strategy as “unilateral bullying,” warning that the new policy undermines decades of trade diplomacy and multilateral agreements.
“This is a typical act of unilateral bullying,” stated China’s Ministry of Commerce. “We urge the U.S. to resolve disputes through fair and equal dialogue—not coercion.”
Markets React Sharply
The announcement sent shockwaves across global financial markets. U.S. stock indices recorded their sharpest one-day decline since 2020, with over $2.5 trillion wiped off the markets. Investors responded with alarm to the intensifying trade friction, fearing long-term damage to global supply chains.
With both nations showing no signs of backing down, economists warn that this could signal the start of a new era of trade nationalism, with repercussions for global commerce, prices, and consumer goods.
As tensions grow, the world is watching to see who will blink first—or whether this standoff will redefine international trade for years to come.
