China’s finance ministry announced it would enact an additional 34% tariff on all goods imported from the United States in a retaliation move to Washington’s reciprocal tariffs. The new tariff imposed by Beijing will come into effect on April 10.
This development signifies a significant escalation in the ongoing trade skirmish between the world’s two largest economies, reflecting a burgeoning tit-for-tat strategy that could intensify global economic uncertainty. As both nations brace for further economic confrontation, the implications for international trade dynamics continue to broaden.
On Wednesday, the U.S. President Donald Trump announced that all nations will face a 10% baseline tariff on almost all goods imported to the U.S., China, however, will face a 34% tariff on top of the 20% Trump already imposed. Meaning that after April 9, China could face a 54% tariff.
The Chinese commerce ministry later criticized Trump’s announcement for shaking the trade balance each nation has formed through several trade negotiations in past decades, and declared that Beijing will take countermeasures to safeguard its own rights and interests.
In addition to worsening the trade war, Trump also signed an executive order to shut down the “de minimis” loophole. This flaw allows China and Hong Kong to ship low-value packages into the US without any tariff.
