In consequence to the fresh duties introduced by the Donald Trump administration on 3 April 2025. China announced a series of controversies, including an additional 34% tariff for all goods imported from the US. Beijing Decision, defined as the consequence “A tooth for a tooth”, is the strongest consequence since the escalation of the trade conflict between the 2 world's largest economies.
34% tariff - symmetrical Chinese response
According to the Tariff Commission of the Council of China, 10 April 2025. (from 12:00 p.m. Beijing time) all products originating in the USA will be imposed additional 34% tariff, imposed on the rates of work in force already applicable. This decision is simply a direct consequence to Trump’s alleged ‘library duties’ (Liberation Day tariffs) which includes a rate of 34% on Chinese goods.
– The US's reciprocity policy violates global trade rules, seriously violates Chinese rights and interests and is simply a typical example of unilateral intimidation – stated the Tariff Commission in an authoritative statement.
WTO suit and controls on exports of uncommon earth metals
In addition to the introduction of customs duties, China has taken a number of another actions:
- They lodged a complaint under the WTO Dispute Resolution Mechanism, arguing that fresh U.S. duties violate the organisation's rules.
- They have introduced export controls 7 categories of uncommon earth metals (e.g. samar, gadolin, terb, dysprose) which are utilized in both civilian and military industries.
- Anti-dumping investigation initiated concerning the import of CT tubes from the USA and India.
Black List of American Companies
The Ministry of Commerce of China added 16 US entities (among others, advanced Point Aerotechnologies, Sierra Nevada Corporation) on the list of export controls, prohibiting the sale of dual-use goods to them. Next 11 companies (including Skydio Inc., BRINC Drones) was listed as “untrustworthy entities” (Unreliable Entities List) for military cooperation with Taiwan.
Suspension of food imports from the USA
Chinese Customs Administration suspended imports of products from two American poultry producers (Mountaire Farms, Coastal Processing) due to the detection of unauthorised substances. In addition, export restrictions were imposed sorghum and meat-and-bone meal by C&D (USA) Inc. and American Proteins Inc.
Experts: ‘Trade war has no winners’
– This is simply a strong response, but its impact on the Chinese economy will be limited – evaluates Larry Hu, China's chief economist at Macquarie Group. – Many goods, specified as energy and food, can be replaced by imports from another countries.
According to the Chinese customs office data in 2024. China imported valuable goods from the US US$163.6 billion (decline by 0.1% y/y) while exports to the States increased by 4.9%achieving USD 524.6 billion.
– There are no winners in the trade war – emphasises Fu Zhifeng, manager of Shanghai Chengzhou Investment Management. – Increasing prices will hit global demand, expanding the hazard of stagnation.
Perspectives: Will the escalation last?
Trump's administration warned against retaliation, but Beijing does not intend to yield. – China will focus on strengthening its own economy and diversifying exports – says Bruce Pang, prof. City University of Hong Kong.
In the face of a increasing geopolitical rivalry, the global trading strategy enters a new, unpredictable era of protectionism.
Leszek B. Glass
Email: [email protected]
© www.chiny24.com
