On Friday, United States President Donald Trump responded to China's decision to impose an additional 34% tariff on all American goods, asserting that "they cannot afford to do it."
Trump took to Truth Social, stating, "China played it wrong, they panicked - The one thing they cannot afford to do!"
Tariff War Incoming? 🚨
— Junaid Dar (@JunaidDar85) April 4, 2025
Trump says every country is calling to negotiate after his tariff push.
If this escalates, markets could face serious volatility — just like in 2018. Stocks and crypto might feel the heat.
China hits back with a 34% tariff on US goods — right after… pic.twitter.com/EYHXgvWI5j
In retaliation to Trump's imposition of reciprocal tariffs, China announced on Friday that starting from April 10, it would apply an additional 34% tariff on all US goods. The finance ministry of Beijing confirmed that all US imports would face this new levy, which would be added on top of the existing tariff rates.
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China had previously filed a complaint with the World Trade Organisation after the US imposed reciprocal tariffs on its trade partners. In response to the tariffs, Trump unveiled a sweeping trade policy package on Wednesday, which included a 34% tariff on Chinese imports.
Also read | Which countries are hit hardest by Donald Trump's reciprocal tariffs? Here's full list
Additionally, China’s commerce ministry declared that it would also ban the export of certain dual-use items to 16 U.S. entities, claiming that these entities’ activities could pose a threat to China's national security and interests. The ministry emphasised that no exporter should violate these regulations.
Among the goods affected are seven types of rare earth metals, categorised as medium and heavy rare earths, subject to export controls.
According to the US Office of the Trade Representative, the US had a trade deficit of $295.4 billion with China in 2024.
Commenting on China’s retaliatory move, Su Yue, principal economist for China at the Economist Intelligence Unit, suggested that Beijing’s response could be based on the belief that the US has limited options for escalating its policy toward China. This, in turn, could strengthen China's bargaining position in trade negotiations, reported PTI.
With the addition of these new tariffs, the total tariffs on Chinese goods have now reached 54%, nearing the 60% level that Trump had previously threatened during his election campaign. Including the tariffs imposed during Trump’s first term, the overall levies on Chinese goods have amounted to 79%.
Shortly after assuming office this year, Trump implemented two rounds of 10% tariffs on Chinese goods, first in February and then in March.
