China Retaliates Against US Duties With Tariffs, Export Controls
China retaliated against President Donald Trump's reciprocal tariffs with duties of 34% on all U.S. goods, along with new export restrictions on U.S. companies and rare earth metals.
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The new tariff rate will take effect April 10 and will come on top of an initial set of counter-tariffs on U.S. agricultural goods in March (see 2503040041). China referred to Trump's 34% tariff rate on Chinese goods, announced on April 2 (see 2504020068), as a "typical unilateral bullying practice" that will harm the U.S. and global economic development. "The U.S. move is not in line with international trade rules, [and] seriously undermines China's legitimate and lawful rights and interests," it said, according to an unofficial translation.
U.S. goods shipped from the place of departure before 12:01 a.m. on April 10 and imported into China between 12:01 a.m. April 10 and 12 a.m. May 13 won't be subject to the additional tariffs.
China also added 16 U.S. entities to its export control list, which blocks them from receiving dual-use items from China; 11 entities to its unreliable entity list, which blocks firms from participating in import and export activities in China; and implemented export controls on various medium and heavy rare earth metals. Chinese exporters will need to apply for a license before shipping the metals to the U.S.
China urged the U.S. to "immediately lift unilateral tariffs and resolve trade differences through consultation on an equal, respectful and mutually beneficial basis."
Trump said on Truth Social that "CHINA PLAYED IT WRONG, THEY PANICKED -- THE ONE THING THEY CANNOT AFFORD TO DO!" In the executive order enacting his reciprocal tariffs (see 2504020084), Trump threatened to "increase or expand in scope the duties imposed" should any country retaliate.