Why it matters:
China's reciprocal tariffs against the U.S. reflect ongoing trade tensions and economic rivalry between the two nations. These tariffs can impact global supply chains, increase costs for consumers and businesses, and disrupt international trade dynamics. They also signal China's strategy to protect its domestic industries while retaliating against US policies. Ultimately, these tariffs can influence diplomatic relations and economic policies, shaping the future of global trade.
The big picture:
China imposed a 34% tariff on all U.S. imports in response to President Trump's executive order that initiated reciprocal tariffs against multiple countries, including China. This move is viewed as a tit-for-tat action following the U.S. tariffs.
What they're saying:
The tariffs, set to go into effect next Thursday, will affect all U.S. products imported to China, according to a Customs Tariff Commission of the State Council statement.
The statement called the US' reciprocal tariffs one-sided "bullying," adding that they violate international trade rules and harm China's rights and interests.
Key points:
- Wall Street plunges as China retaliates with 34% tariffs on U.S. goods.
Go deeper:
Besides imposing additional tariffs, Beijing has banned the export of dual-use items to 16 U.S. entities and added 11 U.S. firms to the "unreliable entity list.
China's Ministry of Commerce said China filed a lawsuit with the World Trade Organization's dispute settlement mechanism against the US over "reciprocal tariffs" on all trading partners.
It also launched an anti-dumping probe into imports of medical CT (X-ray) tubes from the US and India, the ministry said, urging Washington to “immediately” remove the tariffs and resolve any disputes through “fair and equal dialogue” with its trade partners.
Beijing also announced export control measures on certain rare earth-related items.
Hossein Amiri
