China’s move comes in response to US tariffs, totalling 34% on Chinese goods, announced by Washington this week
Muhamad Yehia .. Cairo
China announced on Friday that it would impose a 34% tariff on imported goods from the US, starting 10 April.
The move is a response to a US levy of the same amount on Chinese goods, announced by US President Donald Trump earlier this week as part of his so-called “Liberation Day” package.
The US 34% tariff is on top of previously announced duties, meaning the overall tariff rate could rise to at least 54%.
The Commerce Ministry in Beijing also said that it had filed a lawsuit with the World Trade Organization (WTO) in relation to Trump’s tariffs
“It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order,” said a spokesperson.
Washington’s approach “seriously violates WTO rules, damages the legitimate rights and interests of WTO members, and undermines the rules-based multilateral trading system and the international economic and trade order,” Beijing added
China also announced on Friday that it would impose more export restrictions on rare earths, used in products like computer chips and EV batteries
Included in the list of minerals subject to controls is samarium and its compounds, which are used in aerospace manufacturing and the defence sector. Another element called gadolinium is used in MRI scans.
Suspension of certain imports
China’s customs administration announced it had suspended chicken imports from two US 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 government in Beijing said it had 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
In February, China announced a 15% tariff on imports of coal and liquefied natural gas products from the U.S. It separately added a 10% tariff on crude oil, agricultural machinery and large-engine cars.
The latest tariffs apply to all products made in the US, according to a statement from the Ministry of Finance’s State Council Tariff Commission.
Goods expected to be hard-hit include pharmaceutical products, crude oil, petroleum gas and LNG. China also imports a significant amount of US agricultural products.
Markets plummet
Trump’s trade announcements have sent jitters through global markets this week.
The US’ S&P 500 Index sank 4.8% yesterday, its biggest drop since June 2020, while the Nasdaq 100 Index shed 5.4%.
European markets fell in response to China’s retaliation on Friday. The CAC 40 was down around 4%, the DAX plummeted almost 5%, while the FTSE 100 fell 4.3%.