In a sharp escalation of global trade tensions, China announced it will impose 34% tariffs on all imports from the United States starting April 10. The move marks a significant retaliatory step against recent actions taken by U.S. President Donald Trump, who earlier this week implemented an additional 34% tariff on all Chinese goods entering the U.S.
The decision, released Friday by China’s State Council Tariff Commission, signals a hardening stance by Beijing after what it described as Washington’s repeated violations of international trade norms. The Chinese government accused the United States of engaging in unilateralism and undermining China’s economic interests.
President Trump, who returned to office in January, had already introduced two rounds of 10% duties on Chinese imports. According to the White House, the tariffs aimed to curb the flow of illicit fentanyl from China to the U.S. With the new measures, Chinese products entering the American market now face an effective 54% tariff burden.
Beijing’s latest retaliation is broader and more aggressive than previous responses. In addition to the blanket tariffs, China has expanded its economic countermeasures. Eleven U.S. companies— including drone manufacturers—were added to the country’s “unreliable entity list,” while export controls were imposed on 16 American firms, restricting their access to Chinese dual-use technologies.
Further steps announced include anti-dumping investigations into medical CT X-ray tubes imported from the U.S. and India, and new export restrictions on seven rare-earth minerals essential to advanced manufacturing. These include samarium, gadolinium, and terbium—materials widely used in electronics, clean energy, and defense applications.
The mounting trade war is already reverberating across global markets. U.S. stock futures plummeted following Beijing’s announcement. Dow futures sank by over 1,000 points, or 2.3%, while the S&P 500 and Nasdaq Composite futures were down 2.4% and 2.7%, respectively. European and UK markets also suffered sharp losses, each sliding more than 3% in what analysts called their worst day in years.
Thursday’s U.S. trading session had already seen major indexes post their steepest one-day declines since the pandemic began, with the Dow dropping more than 1,600 points and the Nasdaq shedding nearly 6%.
The timing of China’s announcement coincided with a major national holiday, underscoring the government’s resolve to project strength both domestically and internationally. However, the escalating tariffs come at a difficult juncture for China’s economy, which has shown signs of slowing. In response, Chinese authorities have recently intensified efforts to boost domestic consumption and stabilize economic growth.
As the two largest global economies dig in their heels, businesses worldwide—especially those dependent on U.S.-China supply chains—face a period of significant uncertainty and disruption. Analysts warn that the tit-for-tat measures could fundamentally reshape half a trillion dollars in annual trade between the two nations, reversing decades of economic interdependence.
This is a developing story. Further updates are expected.
