China has announced a new 34% tariff on goods coming in from the United States. This decision comes just days after the US set the same tariff rate on Chinese imports. These new rules will start on April 10, according to China’s top government body, the State Council.
This move is not just a small change. It’s a major step in what is turning into a heated trade battle between the world’s two largest economies. A tariff is a kind of tax that countries put on goods coming from other countries. By doing this, China is making it more expensive for American products to be sold in Chinese markets.
This back-and-forth started when the United States slapped a 34% tariff on Chinese goods. China did not wait long to respond. The quick answer from Beijing shows that the Chinese government is ready to play hardball instead of talking things over with the US government.
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More Than Just Tariffs: Export Bans and Blacklists
China didn’t stop at tariffs. Alongside this 34% charge, the Chinese government also made other moves to show how serious they are. They announced restrictions on exports to 16 American companies. This means some Chinese-made products will no longer be sold to these American firms.
In addition, six US-linked companies have had their eligibility to export goods into China suspended. This means they’re now blocked from doing business with Chinese customers until further notice.
But that’s not all. China has also updated its “unreliable entities” list — a list of foreign companies it considers untrustworthy. Eleven more US firms have been added to this list. One of the names included is a well-known US drone manufacturer, Skydio. Being on this list makes it harder for these companies to operate in China, as they could face restrictions or even bans.
This shows that China is not only focusing on taxes but is also going after companies it sees as threats or unfriendly players in this trade dispute.
Rare Earth Controls and Market Chaos
China is also tightening its grip on rare earth minerals, which are key materials used in electronics, military equipment, and renewable energy products. These minerals are hard to find and even harder to replace. China is one of the biggest producers of them, so controlling who gets to buy them is a powerful move.
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These export controls make it more difficult for US companies to get the rare materials they need. This will likely slow down production for some American manufacturers, especially those working with electronics and advanced technologies.
All of this had a big impact on financial markets. On Thursday, news of China’s new tariffs and other actions wiped out a massive US$2.5 trillion from US stock markets. This drop was the worst seen since 2020. Investors panicked, and the value of many big US companies fell sharply in just one day.
On top of this, China’s Ministry of Commerce spoke out strongly against the US decision to raise tariffs. In a public statement, the ministry said the US actions were “unilateral bullying” and not in the spirit of fair trade. They called on the United States to remove the new tariffs and handle problems through open and equal discussions.
This latest step shows that trade tensions between China and the US are not going away anytime soon. With both sides taking strong actions, the effects are already being felt around the world, especially in global markets and supply chains.
