China has retaliated against the United States after President Donald Trump announced sweeping global tariffs.
The Chinese Communist Party (CCP) announced a 34 percent tariff on all U.S. imports on Friday. This marks a significant escalation in the trade war.
Trump imposed some of the harshest tariffs on China. “Combined with 20% in other levies that Trump has imposed on Chinese goods since returning to office in January, the total U.S. tariff on some Chinese goods is at least 54%,” NBC News reported.
Beijing, along with several other nations, declared they would impose retaliatory measures in response to Trump’s announcement. Its Ministry of Finance issued a statement explaining the new tariffs.
The latest U.S. tariff “does not comply with international trade rules, seriously harms China’s legitimate rights and interests, and is a typical act of unilateral bullying,” the Chinese Ministry of Finance said in a statement Friday. “It not only damages U.S. interests but also endangers global economic development and the stability of supply chains.”
China’s tariff on U.S. goods will take effect next Thursday, the ministry said. The new U.S. tariff on Chinese goods takes effect on Wednesday.
China also took aim at the U.S. agriculture sector, announcing an immediate suspension on the import of chicken products from three U.S. companies, and the import of sorghum from C&D (USA) Inc., citing health concerns.
The Chinese Commerce Ministry said it had filed a lawsuit at the World Trade Organization over the 34% tariff Trump announced Wednesday.
“China has always been a staunch defender of the international economic and trade order and a firm supporter of the multilateral trading system,” a ministry spokesperson said. “We urge the U.S. to immediately correct its erroneous practices and cancel the unilateral tariff measures.”
In a post on Truth Social, President Trump reacted to China’s move. “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!” he wrote.
The Chinese government’s retaliation is not only limited to tariffs. It will also take action against American businesses, according to The New York Times.
Separately, China’s Ministry of Commerce said it was adding 11 American companies to its list of “unreliable entities,” essentially barring them from doing business in China or with Chinese companies. The ministry imposed a licensing system to restrict exports of seven rare earth elements that are mined and processed almost exclusively in China and are used in everything from electric cars to smart bombs.
The commerce ministry also announced it was beginning two trade investigations into American exports of medical imaging equipment — one of the few manufacturing categories in which the United States remains internationally competitive.
It is worth mentioning that these new tariffs will affect fewer goods than the duties Trump imposed on China because it sells far more goods to the U.S. than the other way around. “China bought $147.8 billion worth of American semiconductors, fossil fuels, agricultural goods and other products last year. It sold $426.9 billion worth of smartphones, furniture, toys and many other products to the United States,” NBC News noted.
China has indicated that it might be willing to make concessions if it can negotiate a deal with the U.S. Beijing suggested it could agree to approve the sale of video-sharing app TikTok to avoid a ban.
This development comes as Vietnam indicated it would slash tariffs on U.S. imports to zero if an agreement can be reached.