google.com, pub-3998556743903564, DIRECT, f08c47fec0942fa0 China Vows Retaliation As US Imposes Sweeping New Tariffs

China Vows Retaliation As US Imposes Sweeping New Tariffs

By Heraldviews

China has demanded the US immediately cancel its latest tariffs and pledged countermeasures, escalating tensions between the world’s two largest economies.

The warning from Beijing came after US President Donald Trump announced sweeping new levies, including a 34% additional tariff on Chinese goods, on top of existing 20% duties, bringing the total new charges to 54%.

"Firm Opposition" from China

China’s Commerce Ministry said the US move "disregards years of multilateral trade negotiations" and the benefits America has gained from global trade.

"China firmly opposes this and will take countermeasures to safeguard its own rights and interests," the ministry said in a statement.

The move risks deepening a global trade war, disrupting supply chains and raising costs for businesses and consumers.

How the New US Tariffs Will Work

  • From Saturday, Chinese exporters will face a 10% baseline tariff on nearly all goods shipped to the US.
  • The remaining higher "reciprocal tariffs" (up to 34%) take effect from 9 April.
  • The average US tariff on Chinese goods will reach 76%, according to trade expert Chad Brown of the Peterson Institute for International Economics.

Trump Closes "De Minimis" Loophole

The US president also signed an order closing a trade loophole that allowed low-value packages from China and Hong Kong to enter the US duty-free.

Unmet Trade Deal Promises

The US had given China until 1 April to prove it was meeting commitments under the 2020 "Phase 1" trade deal, which required $200 billion in additional US purchases over two years.

But Beijing fell short after the COVID-19 pandemic disrupted trade. Chinese customs data shows:

  • 2017 (pre-trade war): $154bn in US imports
  • 2023: $164bn, still below the deal's targets

What Happens Next?

China has not yet detailed its retaliation, but options could include:

  • Higher tariffs on US goods (such as soybeans, aircraft, or cars)
  • Export restrictions on key materials
  • Trade investigations targeting US firms

With both sides digging in, the risk of a full-blown trade war looms larger, potentially hitting global growth and inflation.

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