The Increase in Trade War Tensions is Due to China Retaliating With a 34% Tariff on All US Goods

In response to the latest U.S. tariffs, China has retaliated by imposing significant levies on American products, intensifying the trade conflict between the world's largest economies.

The Chinese finance ministry announced on Friday that a 34% tariff will be applied to all imports from the United States starting on April 10. This move mirrors President Trump's imposition of tariffs on Chinese goods, which was unveiled as part of his broader tariff strategy on Wednesday.

In a statement, the ministry urged the United States to lift its unilateral tariff actions promptly and seek to resolve trade disputes through fair, respectful, and mutually beneficial negotiations.

According to the research firm Capital Economics, the Chinese retaliation is seen as a negative sign for the possibility of reaching a resolution in the near future. The analysts at the firm described the response as aggressive and escalating, stating that it significantly reduces the chances of a quick resolution to the trade war between the two superpowers.

The recent Chinese tariffs on American products do not match the level of tariffs imposed by the United States on Chinese goods. Before the latest development, President Trump had already enforced a 20% tariff on Chinese products, increasing the total rate to 54%. In response to the initial tariffs by the U.S., China had implemented specific tariffs and other countermeasures.

Chinese countermeasures have extended to impact American companies as well. The recent restrictions imposed by China also target rare earth exports and U.S. companies.

The Chinese commerce ministry announced on Friday that it is imposing limitations on 16 U.S. entities by adding them to an export control list. This move prohibits them from purchasing Chinese products that are classified as dual-use, serving both civilian and military purposes.

In a statement, the ministry expressed concerns that these entities have engaged in activities that could endanger China's national security and interests. It emphasized that no export operator is permitted to violate these regulations.

The Commerce Ministry has taken action against 11 American companies by placing them on an "unreliable entity" list, effectively banning them. The reason cited was their involvement in "alleged military technology collaboration with Taiwan, despite China's firm objections." Beijing views Taiwan as a part of its territory.

Additionally, the Commerce Ministry has declared that export restrictions will be enforced on seven rare earth minerals. These minerals comprise samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium.

China's customs administration has decided to suspend the import qualifications for certain American companies dealing with farm products. This move comes as a response to the tariffs imposed by the United States.

The Chinese finance ministry has justified the retaliatory tariffs by stating that the actions taken by the United States do not comply with international trade regulations. The ministry further added that such tariffs severely impact China's rightful rights and interests, labeling the US actions as a form of unilateral bullying.

According to a statement, the actions taken by the United States not only harm its own interests but also pose a threat to the global economy and the stability of production and supply chains.