China to Impose 34% Tariff on US Goods Starting April 10th, a Retaliatory Measure to Trump's Tariffs. Beijing also announced tighter controls on rare earth exports.
China America Trade War: Following the initiation of the world's largest tariff war by US President Donald Trump, China has adopted an aggressive stance. On Friday, China announced that it will impose an additional 34% tariff on all US products starting April 10th. This decision has caused alarm in Washington. The Trump administration had already imposed significant tariffs on several countries, including China.
Which Products Will Face the New Tariffs?
Beijing's new tariffs particularly impact rare earth elements. These include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. Furthermore, China announced stricter controls on rare earth exports, potentially leading to increased prices in the global market.
China's Statement Following the Tariff Imposition
In a statement, China's Ministry of Commerce said, "The purpose of this measure is to strengthen national security and fulfill international obligations such as nuclear non-proliferation." Beijing also added 11 foreign entities to its "unreliable entities list," subjecting them to potential punitive actions.
America's Prior Actions
Prior to China's retaliatory action, the US imposed significant tariffs on several countries starting April 2nd. These include:
China: 34% tariff
European Union: 20% tariff
South Korea: 25% tariff
Taiwan: 32% tariff
Japan: 24% tariff
Foreign Automobiles: 25% tariff
Trump's Statement: "America Will No Longer Be Dependent"
Defending his tariff decision, Donald Trump stated, "For years, we strengthened other countries, benefiting their militaries and economies, while receiving only substantial tariffs in return. This will no longer be tolerated. America will act in its own interests."
Impact on the Global Market
This new tariff war between China and the US could significantly impact global trade. Controls on rare earth elements will affect the technology industry, while the automobile sector may also be impacted. Investors are exercising caution in the market due to the uncertainty.
