China has responded to the US tariffs by imposing its own, with a 34 percent surcharge on all US goods, effective from April 10, according to the Chinese Finance Ministry’s announcement on Friday in Beijing. This move comes after US President Donald Trump announced additional US tariffs of 34 percent on Chinese goods on Wednesday.
Additionally, the Chinese Commerce Ministry has introduced export controls for seven rare earths, including Gadolinium, used in magnetic resonance tomography and Yttrium, used in electrical appliances.
China, the world’s largest trading nation, exports a vast array of goods to the world, with a total value of over $400 billion annually, far surpassing the US. Trump’s global tariffs, set to take effect on April 2, have hit the core of China’s two main export strategies: relocating part of its production abroad and increasing sales on non-US markets.
In a recent development, Trump had hinted at granting China trade concessions if the Chinese government gives the green light for the sale of the short-video service TikTok. The US president said on Thursday that a TikTok sale was now in reach, following his statement on the Air Force One.
The far-reaching tariffs of the Trump administration could deliver a lasting blow to global demand. China, due to its heavy reliance on a trade surplus of over $1 billion in the past year, is more vulnerable to the risks of a shrinking global trade, with its economic growth heavily dependent on this surplus.