In a dramatic escalation of the ongoing trade war, China announced a 34% tariff on all US imports, effective April 10th. This retaliatory measure comes on the heels of President Donald Trump’s announcement of new tariffs on Chinese goods, ranging from 10% to 49%. The Chinese Ministry of Commerce condemned the US tariffs as “unilateral bullying,” highlighting the sharply escalating tensions between the two economic giants.
Trump’s latest tariffs, justified under the principle of reciprocity, hit China particularly hard. The new 34% levy, added to existing tariffs, brings the total duties on Chinese exports to the US to at least 54%. This significant increase is likely to have far-reaching consequences for both economies.
China’s response wasn’t limited to tariffs. The Ministry of Commerce added eleven US firms to its unreliable entities list, citing military cooperation with Taiwan. Furthermore, sixteen US companies faced new export control measures designed to monitor the transfer of dual-use goods. These actions underscore the deepening strategic rivalry beyond the purely economic realm.
Prior to these latest developments, a significant tariff imbalance already existed. Bloomberg calculations show China’s average tariff on US products was 17.8%, while the US levied a 32.8% tariff on Chinese goods. China’s Finance Ministry explicitly stated that the US actions violate international trade rules and unfairly impact China’s interests, further fueling the escalating conflict.
This tit-for-tat exchange highlights the increasing difficulty in resolving the trade dispute. With both sides implementing significant tariffs and taking additional retaliatory measures, the prospect of a swift resolution seems increasingly remote. The long-term effects of this trade war on global markets and international relations remain to be seen, but the current trajectory points towards a prolonged period of uncertainty and economic volatility.
