China Hits Back with Countermeasures as Trade War with US Escalates

China has announced a series of retaliatory measures against tariffs imposed by the United States, escalating the already tense trade war between the two economic powerhouses, Al Jazeera reports.

The measures include new tariffs of 34% on all US goods, restrictions on the export of certain rare earths, and punitive actions against US companies operating in China.

The move comes after US President Donald Trump announced a 34% tariff on Chinese goods on Wednesday, adding to the 20% he had already imposed earlier this year, bringing the total new levies to 54%.

China’s Ministry of Finance stated that the additional tariffs would be implemented from April 10. In response to Washington’s 10% tariffs on Chinese goods, Beijing had previously imposed tariffs of 15% on US imports of coal and liquefied natural gas (LNG).

Beijing has also announced strict export controls on key minerals and businesses, effectively limiting what can be traded with the US.

“The purpose of the Chinese government’s implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfil international obligations such as non-proliferation,” the Ministry of Commerce said in a statement.

On Friday morning, Trump responded to the retaliatory measures with an angry social media post written in all capital letters:

“CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”

Despite the heated rhetoric, China is moving forward with its strategy to counter Trump’s aggressive trade policies. It has filed a formal complaint with the World Trade Organization (WTO) against the new US tariffs, arguing that the measures violate WTO rules and requesting consultations.

As part of its counter-measures, China imposed sweeping export controls to limit the exchange of goods and services with the US. These include restrictions on the export of medium and heavy rare earths to the US, such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, effective from April 4.

The measures also target US businesses. China added 16 US entities to its export control list, banning the export of dual-use items to affected firms. Furthermore, 11 US firms were added to the “unreliable entities” list, which allows Beijing to take punitive action against foreign entities. Targeted firms include Skydio Inc and BRINC Drones, accused of arms sales to Taiwan, which China claims as part of its territory.

The Chinese Commerce Ministry stated that the targeted companies had seriously “undermined” China’s national sovereignty, security, and development interests and would be banned from making new investments, or engaging in import and export activities in China.

Agriculture trade has also been impacted. Chinese customs have imposed an immediate suspension on imports of sorghums from grain exporter C&D (USA) Inc, as well as poultry and bonemeal from three US firms.

Adding to the economic pressure, Beijing announced it has launched an anti-dumping probe, looking into imports of certain medical CT tubes from the US and India. It also plans a wider investigation into how the competitiveness of the medical industry has been affected by imports of medical CT tubes.