China fires back at Trump's tariffs with 34% levy on all U.S. imports
/ CBS/AP
Beijing — China announced Friday that it will impose a 34% tariff on imports of all U.S. products beginning April 10. The new tariff matches the rate of the U.S. tariff announced by President Trump this week, which he called a "reciprocal" measure, claiming China had tariffs and other measures in place on U.S. goods already that amounted to a 67% trade barrier.
For Mr. Trump's so-called "Liberation Day" tariffs, the White House used a formula to calculate the sum of all the trade practices it deems unfair from other nations, including currency manipulation, tariffs and other barriers, in reaching its decision on how heavily to tariff almost every other country in the world. Economists have questioned the methodology, and many foreign governments have complained the levies are unfair and misrepresent their trade imbalances with the U.S.
The Commerce Ministry in Beijing also said in a notice that it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.
Included in the list of minerals subject to controls was samarium and its compounds, which are used in aerospace manufacturing and the defense sector. Another element called gadolinium is used in MRI scans.
China's customs administration said it had suspended imports of chicken from two U.S. suppliers, Mountaire Farms of Delaware and Coastal Processing. It said Chinese customs had repeatedly detected furazolidone, a drug banned in China, in shipments from those companies.
Additionally, the Chinese government said it has added 27 firms to lists of companies subject to trade sanctions or export controls. Among them, 16 are subject to a ban on the export of "dual-use" goods. High Point Aerotechnologies, a defense tech company, and Universal Logistics Holding, a publicly traded transportation and logistics company, were among those listed.
Beijing also announced Friday that it had filed a lawsuit with the World Trade Organization over the Trump administration's tariffs.
Later Friday, Mr. Trump criticized China's decision to match his tariffs, saying in a social media post: "CHINA PLAYED IT WRONG, THEY PANICKED — THE ONE THING THEY CANNOT AFFORD TO DO!"
The Trump administration's unveiling of its massive package of tariffs this week has proven a gut-punch for global stocks, with American markets recording their worst day of losses Thursday since the COVID pandemic struck. That hemorrhaging of stock values continued in Asian and European markets Friday as China announced its retaliation — becoming the first country to do so since Mr. Trump made his announcement at the White House on Wednesday.
China and other nations have voiced hope that new trade agreements with Washington can be struck, and they stress they will pursue negotiations that Mr. Trump has indicated an openness to, but even close allies such as the United Kingdom, which was hit with the minimum 10% base rate tariff on Wednesday, have also made clear that retaliatory measures remain under consideration.
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