China's Ministry of Finance has announced that it will impose an additional 34% tariff on all US goods, effective April 10. This action is a direct response to the broad tariffs recently announced by US President Donald Trump against Chinese products, Reuters reported on Friday. ​

The decision was made following a request from Beijing for Washington to revoke its most recent tariffs, with a warning of potential retaliatory actions to protect China's interests. The Commerce Ministry stated, "China strongly opposes this action and will implement countermeasures to uphold its rights and interests," as tensions between the world's top two economies continue to rise, potentially leading to further trade disputes.

According to China's state broadcaster CCTV, 11 American companies have been added to China's 'unreliable entity' list. China is implementing export controls on rare earth elements, such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which are vital for high-tech industries including semiconductor production, electric vehicle manufacturing, and military equipment development.

"The purpose of the Chinese government's implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfill international obligations such as non-proliferation," the Commerce Ministry said in a statement.

On Thursday, President Trump unveiled a reciprocal plan to impose a 10% tariff on imports from all countries entering the US. The US tariffs include a universal 10% tariff on all imports starting April 5, with additional "reciprocal tariffs" against certain nations, including a 34% increase on Chinese goods, raising the total Chinese import tariff to 54%. These measures have led to significant volatility in global markets, with major indices experiencing sharp declines and fears of a global recession intensifying. ​

Trump recently took action by signing an executive order to close a trade loophole referred to as "de minimis," which previously allowed small packages from China and Hong Kong to enter the US without paying duties.

This move coincides with the US Trade Representative's evaluation of China's compliance with the terms of the 2020 "Phase 1" trade agreement. The agreement mandated China to ramp up its purchases of US exports by USD 200 billion within a two-year timeframe. Despite citing the effects of the Covid-19 pandemic, Beijing failed to meet its specified targets.

China's retaliatory tariffs are expected to impact a wide range of American industries, particularly those involved in agriculture and manufacturing. This escalation in trade tensions has raised concerns about prolonged economic conflict between the two largest economies, with potential repercussions for global trade and economic stability. 

Besides, the European Union faces a 20% tariff, while Vietnam leads with a 46% rate. Taiwan follows at 32%, Japan at 24%, India at 26%, and South Korea at 25%. Thailand is subject to a 36% tariff, Switzerland 31%, Indonesia and Malaysia 32% and 24%, respectively. Cambodia faces one of the highest rates at 49%. The United Kingdom has a lower 10% tariff, while South Africa is at 30% and Brazil at 10%. Bangladesh is hit with a substantial 37% tariff, Singapore only 10%, and Israel and the Philippines each at 17%. Chile and Australia have a 10% tariff, while Pakistan is at 29%, Turkey at 10%, and Sri Lanka at 44%.

US Tariffs and Trade Deficits