Beijing has announced a series of retaliatory measures against the United States in response to the Trump administration’s recently imposed “Liberation Day” tariffs.
Effective April 10th, China will impose a 34% tariff on imports of all U.S. products. This tariff mirrors the 34% “reciprocal” tariff on Chinese exports that the U.S. has instituted.
Beyond tariffs, China’s Commerce Ministry revealed plans to tighten export controls on rare earths, a group of minerals crucial for high-tech manufacturing. The controls will affect minerals like samarium (used in aerospace and defense) and gadolinium (used in MRI scans).
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China’s customs administration also announced the suspension of chicken imports from select U.S. suppliers. This action is based on the detection of furazolidone (a banned drug in China) and high levels of mold and salmonella in poultry shipments from these companies. The suspensions impact one sorghum exporter (C&D Inc.) and four poultry companies.
The Chinese government further escalated the situation by adding 27 firms to its lists of companies facing trade sanctions or export controls. Sixteen of these firms are now subject to a ban on exporting “dual-use” goods. Notable companies on this list include High Point Aerotechnologies (a defense tech company) and Universal Logistics Holding (a publicly traded transportation and logistics company).
In a significant move, China also announced that it has filed a lawsuit against the United States at the World Trade Organization (WTO).
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The Commerce Ministry’s statement accompanying these actions was strongly worded:
“The United States’ imposition of so-called ‘reciprocal tariffs’ seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and international economic and trade order,” the ministry said. “It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this,” it added.
This series of actions by China represents a significant escalation in the ongoing trade dispute with the United States.
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