China hits back at Trump with 34% tariff on U.S. imports
HONG KONG — China announced a 34% tariff on all products imported from the U.S. on Friday, escalating the trade war between the world’s two biggest economies.
The move came two days after President Donald Trump imposed the same tariff on all Chinese imports as part of what he called reciprocal tariffs on a long list of U.S. trade partners.
Combined with 20% in other levies that Trump has imposed on Chinese goods since returning to office in January, the total U.S. tariff on some Chinese goods is at least 54%.
Announcing the new tariffs at a White House event on Wednesday, Trump singled out China as one of the “nations that treat us badly.” The U.S. has a higher trade deficit with China than with any other country, reaching $295.4 billion last year.
China, one of the U.S.’s largest trading partners, urged the Trump administration to immediately cancel the tariffs and “resolve trade disputes through consultations in a manner of equality, respect and reciprocity.”
The latest U.S. tariff “does not comply with international trade rules, seriously harms China’s legitimate rights and interests, and is a typical act of unilateral bullying,” the Chinese Ministry of Finance said in a statement. “It not only damages U.S. interests but also endangers global economic development and the stability of supply chains.”
China’s tariff on U.S. goods will take effect next Thursday, officials said. The new U.S. tariff on Chinese goods takes effect on Wednesday.
The Chinese Commerce Ministry also said it had filed a lawsuit at the World Trade Organization over the 34% tariff Trump announced Wednesday.
“China has always been a staunch defender of the international economic and trade order and a firm supporter of the multilateral trading system,” a ministry spokesperson said. “We urge the U.S. to immediately correct its erroneous practices and cancel the unilateral tariff measures.”
The ministry added 11 U.S. companies to its “unreliable entities” list, prohibiting them from importing from or exporting to China, and 16 companies to its export control list.
In addition, the Commerce Ministry announced an anti-dumping investigation into imported medical CT X-ray tubes from the U.S. and India and new export controls on rare earths including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium starting Friday.
U.S. stock futures and European markets fell sharply on Beijing’s announcement. The news came on Friday evening in China as markets were closed for a public holiday.
The new 34% tariff is significantly higher than the ones Beijing previously imposed on U.S. goods in response to tariffs Trump announced against China in February and March. Those tariffs ranged from 10% to 15% and were targeted only at certain goods.
China had also previously announced investigations, new export controls and the inclusion of more U.S. companies on the unreliable entities list.
The U.S. imported $438.9 billion in goods from China last year, according to the U.S. Trade Representative, and exported $143.5 billion in goods.
This is a developing story, please check back later for further updates.
