China Responds to Trump’s Tariffs: New 34% Levies on US Goods Spark Trade Tensions

China is set to impose a staggering 34 percent tariff on all American imports in response to Donald Trump’s recent tariff measures. This move, announced by Beijing, marks a significant escalation in the ongoing trade conflict that has raised concerns over a potential recession and led to a global stock market downturn. The new tariffs, taking effect on April 10, align with the reciprocal tariff imposed by Trump.

The U.S. exports to China were valued at $143.5 billion last year, primarily consisting of oilseeds, grains, and machinery. In a strategic counteraction, Beijing plans to implement export controls on rare earth elements vital for high-tech products, including computer chips and electric vehicle batteries.

Additionally, 11 foreign entities have been placed on China’s ‘unreliable entity’ list, enabling punitive actions against them. China also filed a lawsuit with the World Trade Organization concerning the extensive U.S. tariffs, highlighting the urgency of the situation.

As global markets react with volatility and uncertainty, investment bank JP Morgan predicts a 60 percent chance of recession by year-end. Countries worldwide, from Canada to Japan, are bracing for the fallout and are gearing up for potential retaliatory measures, emphasizing the critical nature of these unfolding trade dynamics.