U.S.-China Trade Tensions
The ongoing trade dispute between the United States and China has escalated with new tariffs and trade measures.
China's Retaliatory Measures
- Tariffs: China announced a 34% tariff on all U.S. imports, effective April 10, 2025. This matches the U.S. reciprocal tariff on Chinese exports.
- Export Controls: China will impose additional export controls on rare earths, crucial for high-tech industries.
- Trade Sanctions: 27 firms have been added to lists for trade sanctions, with 16 facing a ban on "dual-use" goods exports.
U.S. Response
US President criticized China's actions, suggesting it was a panic-driven response.
Market Impact
- Companies with significant business in China, particularly on Wall Street, experienced notable stock losses.
Legal and Diplomatic Actions
- China filed a lawsuit with the World Trade Organization, contesting the U.S. tariffs as a violation of WTO rules.
Previous Tariff Announcements
- In February, China had already imposed tariffs on U.S. coal, liquefied natural gas (15%), and crude oil, agricultural machinery, large-engine cars (10%).
