China has announced sweeping retaliatory tariffs of 34% on all US imports, effective immediately, in response to US President Donald Trump’s latest escalation of trade hostilities.
The move, announced by China’s State Council Tariff Commission on Friday, marks a dramatic hardening of Beijing’s stance and threatens to upend decades of economic interdependence.
This practice of the US is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice.
The Chinese measures come just days after Trump imposed a 34% tariff on all Chinese goods entering the US, compounding earlier 10% levies introduced earlier this year. Combined, the duties mean Chinese imports now face an effective 54% tariff, far exceeding analysts’ expectations and raising fears of a full-scale decoupling.
Unlike previous retaliations, which targeted specific sectors like agriculture and energy, China’s latest response is comprehensive, covering all American goods.
The tariffs arrive at a precarious moment for both economies. China, already grappling with slowing growth, now faces further pressure on exports, whereas US businesses with deep supply chain ties to China are scrambling to adapt. The new duties also coincide with Beijing’s expansion of its “unreliable entity list,” blacklisting 11 US firms—including major drone manufacturers—and imposing export controls on 16 others.
China also announced anti-dumping probes into US-made medical imaging equipment and restricted exports of seven critical rare-earth minerals, including samarium and gadolinium, key components in high-tech and defence industries.
Financial markets reeled as the trade war intensified. US stock futures plummeted on Friday, with the Dow Jones Industrial Average shedding 1,000 points (2.3%) in pre-market trading. The S&P 500 and Nasdaq Composite followed suit, dropping 2.4% and 2.7% respectively. European and UK indices fared worse, sliding over 3% in their worst single-day performance in years.
The sell-off extends Thursday’s historic losses, when the Dow plunged nearly 4%, its steepest decline since the pandemic. Analysts warn that the tariffs could disrupt nearly $500 billion in annual trade, with ripple effects across global supply chains.
