China Announces 34% Tariff on U.S. Goods in Retaliation to Latest U.S. Trade Actions
HONG KONG — On April 3, 2025, China announced it would impose a 34% tariff on all goods imported from the United States, effective April 10. The move is a direct response to the U.S. government’s decision earlier this week to levy a new 34% tariff on all Chinese imports.
The U.S. tariffs, introduced by President Donald Trump during a White House announcement on April 2, mark the third round of duties imposed this year and significantly raise total import tariffs on Chinese goods to more than 54%. According to U.S. officials, the additional duties were introduced in part to address concerns over illicit drug trafficking, specifically the flow of fentanyl from China into the United States.
China’s Ministry of Commerce stated that the U.S. actions violate international trade norms and infringe on China’s economic interests. The newly announced Chinese tariffs represent the most extensive retaliatory measure taken so far, following prior targeted duties on agricultural and energy products.
Additional Measures by China
Alongside the new tariffs, China introduced several other actions:
- Export controls on seven rare earth minerals, including samarium, gadolinium, and terbium.
- Anti-dumping investigations targeting CT X-ray tubes imported from the U.S. and India.
- Restrictions on U.S. companies: Eleven American firms, including drone manufacturers, were added to China’s “unreliable entity list,” limiting their access to Chinese markets.
- Export bans on certain dual-use technologies to 16 U.S. companies.
These announcements coincided with the national Tomb Sweeping Festival, a public holiday in China.
Market Impact
Financial markets responded sharply to the developments. On Friday:
- Dow Jones Industrial Average futures fell by 1,000 points (2.3%).
- S&P 500 futures dropped by 2.4%.
- Nasdaq futures declined by 2.7%.
- European and UK stocks posted losses exceeding 3%, marking one of the worst sessions in recent years.
On the previous day, all major U.S. indexes had already posted steep losses, with the Dow falling over 1,600 points and the Nasdaq down nearly 6%, reflecting market volatility tied to escalating trade tensions.
Government Reactions
U.S. Secretary of State Marco Rubio, speaking from a NATO ministerial in Brussels, acknowledged the market downturn but stated that businesses would adapt once clear trade rules are established.
Meanwhile, analysts predict significant economic consequences. According to Macquarie Group’s chief China economist Larry Hu, the average U.S. tariff rate on Chinese goods now stands at approximately 69%. Hu projected that the latest developments could reduce China’s 2025 economic growth by up to 2.5 percentage points. China is currently targeting 5% growth for the year.
Global Supply Chain Concerns
Businesses with supply chains tied to China are now facing compounded challenges. The new tariffs affect not only Chinese goods but also imports from other Asian countries, reflecting a broader U.S. trade shift. During Trump’s previous term, China sought to minimize tariff impacts by rerouting exports through countries in Southeast Asia and Latin America—a strategy that may again come into play.
China has recently taken steps to stimulate domestic consumption amid slowing economic momentum, as officials brace for further trade disruptions in the months ahead. The U.S.–China trade relationship, which has long been marked by interdependence, now faces renewed uncertainty.
