China announced it will impose a 34% tax on all US imports starting next week in direct retaliation to President Trump’s new tariffs on Chinese goods, escalating the ongoing trade war. These new measures match the 34% tariffs recently ordered by Trump and go beyond China’s previous restrained responses to earlier 10% US tariffs.
In addition to the tariffs, China is:
- Imposing new export controls on rare earth minerals critical for technology and defense.
- Suspending imports of sorghum, poultry, and bone-meal from six US firms due to quality concerns.
- Adding 27 US companies to trade restriction lists.
- Launching an anti-monopoly probe into DuPont China Group.
- Filing a lawsuit at the World Trade Organization (WTO), accusing the US of violating international trade rules.
The moves signal a sharper stance from Beijing, indicating reduced hope for near-term negotiations. Analysts warn the escalation may limit diplomatic options, as both sides aim to avoid appearing weak.
Despite the tensions, Trump expressed willingness to continue talks, especially around the sale of TikTok, and extended the divestment deadline by 75 days.
Markets reacted negatively to the news, with US stocks falling sharply.
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