China retaliates against US with new tariffs and rare earth export controls

GlobalData

Mon, Apr 7, 2025, 2:30 AM 2 min read

China has announced a bid of retaliatory measures against the tariffs imposed by the US, marking an escalation successful the ongoing commercialized warfare betwixt the world's 2 largest economies.

The Chinese countermeasures see the imposition of an further tariff of 34% connected each US goods, effectual from 10 April, and export restrictions connected definite uncommon world elements, reported Reuters.

The Chinese Finance Ministry has criticised the US determination arsenic a "typical unilateral bullying practice" and not successful accordance with planetary commercialized rules, stating that it "seriously undermines China's morganatic and lawful rights and interests".

This comes aft US President Donald Trump accrued tariffs connected Chinese goods by 34%, raising the full caller tariffs connected China this twelvemonth to 54%.

The caller Chinese tariffs are successful summation to the 10–15% levies imposed connected prime US cultivation and vigor products earlier this year.

China has besides placed export controls connected definite mean and dense uncommon earths including dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium, which are important for assorted industries including defence and technology.

The export controls took effect connected 4 April.

China added 16 US entities to its export power list, blocking the export of dual-use items to those companies. This includes 15 companies from the defence and aerospace sectors, arsenic good arsenic the Coalition for a Prosperous America, a radical that antecedently supported US economical decoupling from China.

An further 11 US companies were placed connected China’s “unreliable entity” list, giving Beijing the close to enforce penalties specified arsenic bans and fines. The targeted companies see Skydio and BRINC Drones for supplying arms to Taiwan, which China considers portion of its territory.

The Chinese yuan has weakened to its lowest level successful 7 weeks, and banal markets person fallen pursuing the announcement of Trump's reciprocal tariffs, reported the quality agency.

The US President had besides tasked the US Trade Representative to reappraisal China's adherence to the 2020 "phase 1" US-China commercialized statement by 1 April. The deal, which China has not afloat met owed to the Covid-19 pandemic, required Beijing to summation its purchases of US exports by $200bn implicit 2 years.

Last month, President Trump invoked exigency powers to boost home output of captious minerals, aiming to chopped reliance connected overseas sources, particularly China.