Following the U.S. decision to impose a similar tariff on Chinese imports, China has announced plans to impose reciprocal tariffs of 34% on all U.S. goods beginning April 10. This move by China is in response to U.S. President Donald Trump’s recent actions, which China views as “unilateral bullying” that undermines international trade rules and China’s legitimate interests.
President Trump reacted to China’s announcement by stating that China had “panicked” after his decision to impose tariffs. He expressed this sentiment on his social media platform, suggesting that China’s reaction was a strategic mistake.
Citing the need to reduce illegal fentanyl imports from China, the U.S. had previously placed additional tariffs on Chinese goods. When these tariffs are added to those already in place, Chinese goods will be subject to more than 54% tariffs in the United States.
Compared to earlier reactions, China’s retaliation is more extensive, focusing on a wider variety of American imports and involving actions against particular American companies. China has restricted the export of dual-use goods by adding 11 American companies to its “unreliable entity list” and imposing export controls on 16 U.S. companies. China has also placed export restrictions on specific rare-earth minerals to the United States and launched an anti-dumping probe into medical CT X-ray tubes manufactured in the United States.
U.S. stock futures fell sharply on Friday as a result of the announcement, which caused considerable market volatility. European and UK stocks saw significant declines, and Dow futures fell 1,000 points.
Although markets are erratic right now, they will stabilize once the new trade regulations are clear, according to U.S. Secretary of State Marco Rubio.
