In a significant development in international trade, Donald Trump’s recent trade tariffs have prompted a strong reaction from China, which has countered with its own charges on US goods. Following Trump’s announcement of a new 34 percent tariff on Chinese imports into the United States, China has reciprocated with a similar levy on US goods shipped to its territory.
Additionally, China has implemented a ban on 11 American companies from trading within its borders, added 16 more to an export controls list, introduced new restrictions on rare earth mineral exports, filed a complaint with the World Trade Organization (WTO), and initiated investigations into imports of American medical equipment.
In a statement from China’s finance ministry, officials asserted that the US tariffs on Chinese goods “seriously undermine China’s legitimate rights and interests,” labeling it a “typical unilateral bullying practice.”
Trump’s latest levy forms part of a broader set of tariff rates affecting all countries the US trades with, even impacting a few uninhabited islands. This follows two earlier 10 percent tariffs on China, resulting in a total tariff of 54 percent on Chinese goods. Moreover, he signed an executive order abolishing the “de minimis” exemption for packages valued under $800, which could severely impact Chinese retailers such as Shein and Temu.
“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 statement concluded. The new Chinese tariff is set to take effect on April 10th, just one day after the US tariff is enforced.
Furthermore, China has imposed strict limits on the export of rare earth elements that are predominantly mined in China, which are crucial for electric vehicles, weapons, and other technologies.
China is also launching investigations into exports of X-ray tubes from the US and India, amid accusations of “dumping” — selling goods for less than their domestic prices, which harms local industries. The US is known to dominate the international medical device market.
Additionally, China has barred 11 American companies accused of “military and technological cooperation with Taiwan” from importing, exporting, or investing in China, adding them to its “Unreliable Entity List.” These companies primarily consist of drone and defense firms, including Skydio, which shifted its focus entirely to enterprise solutions in 2023.
Moreover, 16 US companies have been placed under export controls, prohibiting the export of dual-use items to these entities. Reports from the BBC indicate that an additional six companies have been restricted from shipping their products to China due to “food safety concerns.”
China’s Commerce Ministry has also stated that it has filed a new charge within the WTO’s dispute settlement system, arguing that Trump’s reciprocal tariffs are in violation of WTO regulations. Initially, China lodged a complaint with the WTO in early February following Trump’s first 10 percent tariff, and it has updated this complaint in light of the subsequent tariffs, which the WTO has labeled as “In consultations.”
This ongoing trade dispute highlights the complexities of international policy and the shifting landscape of global economics, as both nations navigate the implications of these tariffs on their respective economies.
