China Raises Retaliatory Tariffs to 84%, Targets More US Firms With Export Controls
China raised the tariff rate on U.S.-origin goods, from 34% to 84%, in response to President Donald Trump's April 8 executive order raising reciprocal rates by 50% (see 2504080079), the Office of the Tariff Commission of the State Council announced April 9. The new tariffs will take effect at 12:01 a.m. April 10, the commission said, according to an unofficial translation.
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A Chinese Foreign Ministry spokesperson suggested Beijing will continue to respond to further possible U.S. tariff increases. "If the U.S. decides not to care about the interests" of itself, China and the "rest of the world, and is determined to fight a tariff and trade war, China’s response will continue to the end," the spokesperson said at a regular press conference in Beijing April 9. He added that China "firmly rejects and will never accept such hegemonic and bullying move."
A spokesperson for the agency called the U.S. tariffs "a mistake on top of a mistake," noting that China is challenging the duties at the World Trade Organization.
Beijing also announced that it's adding 18 American aerospace and technology companies to its export control list, or so-called unreliable entity list, placing restrictions on their trade with China. Those additions take effect April 10.
The Ministry of Commerce added American Photonics, Novotech, Echodyne, Marvin Engineering Co., Teledyne Brown Engineering, Brinc Drones, Synexxus, Firestorm Labs, Kratos Unmanned Aerial Systems, Domo Tactical Communications, and Insitu to its export control list, according to an unofficial translation. Those companies are blocked from receiving dual-use exports from China.
A ministry spokesperson said China added those companies to its export control list to “safeguard national security and interests and fulfill international obligations such as non-proliferation.”
The ministry also added Shield AI, Sierra Nevada Corp., Cyberlux Corp., Edge Autonomy Operations, Group W, and Hudson Technologies Co. to the unreliable entity list. Those companies are now blocked from participating in import and export activities in China.