In a bold retaliatory move, China has announced sweeping countermeasures against the latest tariffs imposed by United States President Donald Trump. The new measures include additional tariffs of 34 percent on all US goods and strict export controls on rare earth minerals, intensifying the ongoing US-China trade war.
Trump’s New 54% Tariff Prompts Beijing’s Strong Response
President Trump escalated tensions earlier this week by imposing a 34-percent tariff on Chinese goods, adding to the existing 20-percent levy, bringing the total new tariffs to 54 percent. In response, China’s Ministry of Finance confirmed that retaliatory tariffs would take effect on April 10.
China’s Retaliatory Tariffs Target US Energy and Agriculture
Beijing had already imposed 15-percent tariffs on US coal and liquefied natural gas (LNG) in response to Washington’s earlier 10-percent levies. The latest measures go further, hitting US agriculture with an immediate suspension of sorghum imports from C&D (USA) Inc, as well as poultry and bonemeal from three American firms.
In addition, China’s Ministry of Commerce announced stringent export controls on critical minerals, including medium and heavy rare earths such as samarium, gadolinium, terbium, and dysprosium. The restrictions, effective April 4, aim to limit US access to these vital materials used in high-tech manufacturing.
Further adding to the economic pressure, Beijing has expanded its export control list, banning 16 US firms from receiving dual-use items. Another 11 American companies, including Skydio Inc and BRINC Drones, were labeled “unreliable entities” for their alleged involvement in arms sales to Taiwan. The Chinese Commerce Ministry warned that these firms jeopardize national security and will face investment and trade restrictions.
China also initiated an anti-dumping investigation into medical CT tubes imported from the US and India. The probe will assess whether these imports harm domestic industry competitiveness, signaling further regulatory actions ahead.
Global Markets React to Escalating US-China Trade War
The financial fallout from the trade dispute has rattled global markets. US stock futures plummeted on Friday, erasing $2.4 trillion in equity value, while Big Tech stocks like Apple and Nvidia saw sharp declines due to their reliance on Chinese manufacturing.
In Japan, Prime Minister Shigeru Ishiba described the tariffs as a “national crisis,” as banking stocks dragged Tokyo’s market toward its worst weekly performance in years. European shares also faced their steepest weekly loss in three years.
But despite the market upheaval, US Secretary of State Marco Rubio dismissed fears of an economic crash, insisting that markets would adapt.
“Their economies are not crashing,” he stated in Brussels. “The markets are reacting to a dramatic shift in global trade dynamics and will adjust accordingly.”
