China announces 34pc retaliatory tariff on US imports
By Josh White
Date: Friday 04 Apr 2025
(Sharecast News) - China announced a 34% tariff on all US imports on Friday, matching new duties imposed by US president Donald Trump earlier this week and sharply escalating trade tensions between the world's two largest economies.
The new measures, set to take effect on 10 April according to the Financial Times, signalled a deepening trade conflict that is rattling global financial markets.
Beijing described Washington's latest tariff hike as an act of unilateral bullying that violated international trade norms and undermined China's legitimate interests.
The tit-for-tat exchange came at a crucial time for Chinese president Xi Jinping, who had relied on export growth to support the country's economy amid a prolonged property crisis and persistent deflationary pressures.
Trump's tariff policy, unveiled as a set of "reciprocal" duties, had already targeted key Chinese sectors and drawn condemnation from Beijing.
Financial markets reacted sharply to the escalating trade dispute.
Global equities extended losses on Friday, with the Stoxx 600 falling more than 4% and the S&P 500 futures down 2%.
The FTSE 100 shed almost 3%, while Germany's DAX dropped just under 5%.
Investors were reportedly moving into safer assets, driving US Treasury yields to their lowest point since October.
In a further step, China also imposed export bans on seven types of rare earths and added US tech firms, including drone manufacturers Skydio and Brinc Drones, to its "unreliable entity" list.
The designation bars Chinese companies from supplying key components to the listed firms, intensifying pressure on US technology interests.
Reporting by Josh White for Sharecast.com.
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