By John Meyer, consultant in financial affairs – Eurasia Business News, April 4, 2025. Article No 1472.

The trade conflict between the United States and China has escalated significantly with China imposing sweeping tariffs on all U.S. goods. On April 4, China’s Ministry of Finance announced that it will introduce additional tariffs of 34% on all imports from the United States, effective from April 10, 2025.

This move is a direct response to President Donald Trump’s recent tariffs on Chinese products, which include a cumulative rate of 54% following earlier measures.

China’s Retaliation

A 34% tariff will be applied by China to all U.S. imports starting April 10.

China has imposed restrictions on the export of rare earth materials essential for high-tech industries. Beijing also imposed restrictions on about 30 U.S. organisations, mostly in defence-related industries, adding to the already two dozen U.S companies punished over Trump’s tariffs.

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Eleven U.S. companies have been added to China’s “unreliable entity list,” allowing for punitive measures against them.

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Sixteen U.S. companies have been added to an export control list, prohibiting them from obtaining dual-use Chinese products.

Impact and Reactions:

Global Market Reaction: The announcement led to a sharp decline in global stock markets, with significant drops in U.S., European, and UK indices.

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WTO Complaint: China has filed a complaint with the World Trade Organization (WTO), alleging that U.S. tariffs violate international trade rules.

Analysts’ Views: Analysts believe that these actions make a near-term resolution to the trade war highly unlikely.

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This escalation marks a significant shift in China’s response strategy, moving from targeted tariffs to comprehensive measures affecting all U.S. imports. The ongoing trade tensions are expected to have profound implications for global trade and economic stability.

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© Copyright 2025 – Eurasia Business News. Article no. 1471.