China announced it would impose reciprocal 34 percent tariffs on all imports from the US on April 10, CNN reported.
China’s announcement comes after US President Donald Trump imposed an additional 34 percent tariff on all Chinese goods imported into the US, which is a move poised to cause a reset in ties and worsen trade tensions between the two nations.
In a statement, China’s State Council Tariff Commission said, “This practice of the US is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice.”
Donald Trump has reacted to the tariffs imposed by China. He said that China had “panicked” after his announcement of tariffs imposed on China on Thursday. In a post on his social media platform, Trump stated, “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO.”
Since assuming office in January, Trump has already imposed two tranches of 10 percent additional duties on all Chinese imports, which the White House said were needed to stem the flow of illicit fentanyl from China to the US. Combined with pre-existing tariffs, Chinese goods that will be imported into the US would face a tariff of more than 54 percent, CNN reported.
China’s retaliation against the latest round of US tariffs is more sweeping than previous retaliatory actions. China had responded to previous levies swiftly but moderately, imposing retaliatory tariffs on targeted US imports, including agricultural products and fuel, while taking action against certain US firms and bolstering export controls.
On Friday, China added 11 American firms, including drone manufacturers, to its “unreliable entity list and placed export controls on 16 US firms to stop the export of Chinese dual-use items.
The Chinese Commerce Ministry announced an anti-dumping probe into imported medical CT X-ray tubes originating from the US, CNN reported. Furthermore, China has also put export controls on seven types of rare-earth minerals to the US, including samarium, gadolinium and terbium. After China’s announcement to retaliate, US stock futures plunged on Friday, CNN reported.
Dow futures reduced by 1,000 points or 2.3 per cent. The broader S&P 500 was set to open 2.4 percent lower, and the tech-heavy Nasdaq Composite was on pace to start the day at 2.7 percent lower. European and UK stocks dropped over 3 per cent on Friday.
Markets have remained on edge for days. On Friday, US Secretary of State Marco Rubio said that “markets are crashing” after the Trump administration announced tariffs. However, he claimed, “The markets will adjust.” Speaking to reporters at a meeting of NATO foreign ministers in Brussels, he said, “Businesses around the world, including in trade and global trade, just need to know the rules. Once they know what the rules are, they will adjust to those rules.”
