As trade tensions continue to escalate, China has launched sweeping measures targeting American imports and corporations, including a 34% tariff on all U.S. goods effective on April 10.
The move responds to recent duty hikes by the U.S. administration under President Donald Trump, which collectively raised tariffs on Chinese products to 54% in certain sectors. Beijing’s Ministry of Finance described the countermeasures as necessary to protect national interests.
“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner.”
The measures extend beyond tariffs, with 11 U.S. firms added to China’s “unreliable entities list” for alleged contractual violations, while 16 American entities face export restrictions on dual-use technologies. Additionally, stringent controls now apply to seven rare earth materials critical for advanced manufacturing, including samarium, gadolinium, and terbium.
Chinese state media outlet Xinhua condemned Washington’s policies as “inconsistent with international trade rules,” warning they jeopardise global supply chains and economic stability.
Concurrently, Beijing has initiated formal proceedings against the U.S. at the World Trade Organisation, asserting that recent American tariffs “seriously violate WTO rules, seriously damage the legitimate rights and interests of WTO members, and seriously undermine the rules-based multilateral trading system and the international economic and trade order.”
Financial markets reacted swiftly, with pre-market trading indicating sharp declines across U.S. indices and European stocks facing their steepest weekly losses in months. Analysts noted China’s rare earth restrictions particularly target sectors where the U.S. lacks domestic supply chains, including renewable energy infrastructure and defence systems.
The measures coincide with China’s suspension of import permits for select U.S. agricultural products and anti-dumping investigations into medical equipment, compounding pressure on American exporters. Observers suggest Beijing’s actions represent its most assertive response yet to Trump-era trade policies, which have already contributed to a $5 trillion erosion in S&P 500 valuations this year.
As global recession risks mount, European and Asian governments are reportedly coordinating contingency plans, with Japan’s leadership characterising the situation as a “national crisis” requiring urgent diplomatic intervention.