China Imposes 34% Tariff on U.S. Goods, Escalating Trade Tensions

On April 4, 2025, China's State Council Tariff Commission, Ministry of Commerce, and General Administration of Customs announced a series of retaliatory measures against the United States. These actions were in response to the U.S. government's decision to impose "equivalent tariffs" on Chinese exports, a move that China deemed unfair and in violation of international trade rules. The Chinese government's actions were based on its own laws and international legal principles.

The countermeasures included imposing a 34% tariff on all imported goods originating from the United States, effective from April 10, 2025, at 12:01 AM. This tariff was applied on top of the existing tariff rates and did not affect current tax-exempt or reduced-tax policies. Goods that had already been shipped from their origin before the deadline and arrived in China between April 10 and May 13, 2025, were exempt from the additional tariffs.

In addition to the tariffs, the Ministry of Commerce announced several other measures. It decided to list 11 entities, including Skydio Inc., on the unreliable entities list and 16 U.S. entities, including Highpoint Aviation Technology Company, on the export control list. The ministry also initiated an investigation into the competitive strength of the industry for imported medical CT ball tubes and launched an anti-dumping investigation into imported medical CT ball tubes from the United States and India. Furthermore, the Ministry of Commerce, in coordination with the General Administration of Customs, decided to implement export controls on seven types of medium and heavy rare earth elements, including lanthanum, cerium, praseodymium, neodymium, promethium, samarium, and europium.

The General Administration of Customs also announced that it would suspend the qualifications of six U.S. companies to export their products to China. This included suspending the qualifications of one U.S. company to export sorghum, three companies to export poultry bone meal, and two companies to export poultry products.

These retaliatory measures by China led to a significant drop in U.S. stock index futures, which fell by more than a thousand points. The actions underscore the escalating trade tensions between the two countries and the potential economic impact of such measures. The Chinese government's response was swift and comprehensive, targeting various sectors and entities involved in trade with the United States. The move is likely to have far-reaching implications for both countries' economies and their bilateral trade relations.