Amid rising trade tensions with the United States, China has taken a significant step by announcing a 34% retaliatory tariff on all goods imported from the U.S. This new tariff will come into effect on 10 April 2025. Alongside this, China has added 11 American companies to its “Unreliable Entity List” and placed 16 other U.S. firms on its export control list. This move is a direct response to the tariffs recently imposed by U.S. President Donald Trump, further intensifying the global trade war.
China’s State Council Customs Tariff Commission announced this decision, stating that the measure is a counteraction to the “unilateral and unfair” trade policies of the U.S. The Trump administration had imposed an additional 34% tariff on imports from China on April 2, a move that Beijing labeled as “economic coercion.” In a statement, China’s Finance Ministry said, “China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through equal, respectful, and mutually beneficial consultations.”
In addition, China has adopted a tough stance by adding 11 U.S. companies to its Unreliable Entity List. These companies are accused of seeking advanced technology for military purposes. Furthermore, 16 other American firms have been included in the export control list, under which the export of dual-use (military and civilian) items by these companies has been restricted. Prominent companies such as General Dynamics, Boeing Defense, Lockheed Martin, and Raytheon Missiles & Defense are among those affected.
This trade tension between China and the U.S. will impact a trade relationship worth $582.4 billion in 2024. The effects were immediately felt in global markets. Britain’s FTSE 100 index fell by 313 points (3.7%) on April 4, closing at 8159.92, its lowest level since December. Analysts warn that this trade war could heighten the risks of inflation, recession, and stunted global economic growth.
China has issued a warning that if the U.S. does not change its policies, it is prepared to take even stricter measures. Meanwhile, other trade partners like the European Union are also preparing for retaliatory actions, which could further strain the global trade system.
