China Hits U.S. with 34% Tariff in Response to Trump’s ‘Unfair’ Trade Policies

China is set to impose a substantial 34% tariff on all U.S. imports starting April 10, mirroring the recent tariffs introduced by President Donald Trump. This move comes amid escalating tensions over trade practices, as China responds with additional export controls on critical materials, particularly rare earths essential for high-tech goods. The Commerce Ministry announced a crackdown on 27 firms, including defense and logistics companies, heightening concerns about global supply chains.

Furthermore, China has filed a lawsuit with the World Trade Organization, claiming that the U.S. tariffs violate international trade rules and disrupt the global economic order. The World Trade Organization warns that the ongoing tariffs could result in a significant contraction of around 1% in global merchandise trade volumes, which is a sharp downward revision of nearly four percentage points from previous estimates.

As these developments unfold, the landscape of international trade is changing rapidly. Countries like India, Bangladesh, and Vietnam, previously slapped with U.S. tariffs between 27% and 49%, may find new opportunities. China, Japan, and South Korea recently convened to discuss accelerating a free trade agreement, further emphasizing the shifting dynamics of regional trade relations. The ramifications of these tariffs extend beyond borders, potentially igniting fears of a global recession and reshaping economic alliances.