The Chinese government announced on Friday that it will impose a 34% tariff on all imports of US goods starting April 10, following Washington’s decision to implement steep new levies on Chinese products. The move signals a further escalation in trade tensions between the world’s two largest economies.
In addition to the tariffs, Beijing’s Ministry of Commerce declared new export controls on seven rare earth elements, including gadolinium and yttrium. Gadolinium is widely used in medical imaging, particularly in MRI scans, while yttrium plays a crucial role in consumer electronics manufacturing.
“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 fulfill international obligations such as non-proliferation,” the Commerce Ministry stated.
The Chinese government also added 11 foreign entities to its “unreliable entity” list, a designation that allows Beijing to take punitive actions against businesses deemed to be working against China’s economic or national security interests. Companies on this list may face restrictions on trade and investment in China.
The latest trade measures come in response to US President Donald Trump’s aggressive tariff policy, which previously targeted a wide range of Chinese imports. During his first term, Trump imposed tariffs in an effort to encourage US companies to shift manufacturing operations back to the United States or nearby countries such as Mexico. While major corporations like Apple were able to secure exemptions from some tariffs in the past, no such waivers have been granted so far this time.
The renewed trade dispute has raised concerns about potential disruptions to global supply chains, particularly in the technology and manufacturing sectors. Rare earth materials play a critical role in industries ranging from electronics to defense, and restrictions on their exports could have widespread implications.
Analysts warn that these tit-for-tat measures may contribute to economic uncertainty and market volatility in the coming weeks. Investors are closely monitoring developments as both nations weigh further trade restrictions and potential countermeasures.
With trade tensions escalating, the global economy faces an uncertain path, and businesses on both sides of the conflict may need to brace for further disruptions. The coming weeks will be crucial as policymakers in Washington and Beijing navigate the implications of these latest trade moves.
