China Hits Back at US Tariffs with Steep Levies and Trade Restrictions

China Hits Back at US Tariffs with Steep Levies and Trade Restrictions
Beijing has unveiled a series of new trade measures in direct response to fresh tariffs introduced by the United States.

China's Ministry of Finance announced that starting April 10, all American imports will be subject to an additional 34% tariff. This move is seen as a direct countermeasure to the recent escalation of US trade duties on Chinese goods.

Alongside the tariffs, Chinese authorities have imposed new export controls on several critical rare-earth elements—including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—specifically targeting shipments bound for the US. These restrictions will come into effect on April 4.

In a statement, the Ministry of Commerce explained the rationale behind these decisions: “These export limitations are aimed at safeguarding China’s national security and interests, while also fulfilling international commitments, such as non-proliferation obligations.”

China also expanded its "unreliable entities" list, adding 11 new foreign companies. This designation enables authorities to take punitive steps against businesses that are perceived to act against China’s interests.

Retaliation Mirrors US Measures​

The 34% retaliatory tariff imposed by China mirrors the latest rate introduced by the United States under President Donald Trump’s administration. Since retaking office in January, President Trump increased duties on Chinese imports to 20%, and earlier this week introduced a new round of so-called “reciprocal tariffs,” raising the rate specifically for China to 34%.

Additional Moves Linked to Taiwan and Security Concerns​

China has also introduced new restrictions on US firms, citing broader national security concerns and issues related to Taiwan.

Sixteen American companies have been placed on China's “export control” list, which restricts the sale of dual-use items—products, technologies, or software that can serve both civilian and military applications. Chinese officials claim these firms may pose a risk to national security.

In a parallel move, 11 other foreign companies were added to the "unreliable entities" list over alleged military and technical collaboration with Taiwan.

China has also suspended the export permits of six US companies, citing violations related to food safety standards.

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