Response to US tariffs China announces 34 percent tariff on all US goods

As of: 04.04.2025 17:55

China is reacting to US President Trump's tariff package: Starting next week, an additional 34 percent tariff will be imposed on all US goods. In addition, exports of rare earths to the US will be restricted.

China is striking back in the trade conflict triggered by US President Donald Trump. The Ministry of Finance in Beijing announced that an additional 34 percent tariff will now be imposed on all US goods. This tariff will take effect on April 10.

On Wednesday, Trump announced a wave of new tariffs that will also affect major US trading partners. According to Trump's plans, 34 percent is planned for China – significantly more than, for example, for the European Union, which is to be subject to 20 percent. Economically and mathematically, Trump's justifications for the tariffs and their level are highly questionable.

Export controls for rare earths

The government in Beijing also announced controls on the export of certain rare earths to the United States – these include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. This will take effect immediately. Rare earths are essential for many high-tech products such as cell phones and also in the defense industry. China dominates the global market for rare earths.

The ministry also announced that China had filed a complaint with the World Trade Organization (WTO) against the massive US import tariffs on Chinese goods.

Eleven US companies were also classified as"unreliable" companies. This allows the Chinese government to impose punitive measures against foreign companies and effectively makes it impossible for the affected companies to continue trading in China or with Chinese companies.

Trump responded to Beijing's decision on his online service Truth Social, saying China had played the wrong card."They've panicked—the one thing they can't afford!" he wrote in capital letters.

DAX reacts with price losses

The financial markets reacted to this renewed escalation in the trade conflict with further price losses: The German stock index DAX extended its losses and was recently down around four percent. As a major export nation, Germany relies on open markets.

Other stock exchanges also declined. In Paris, prices fell by 4.66 percent, and in London by 4.24 percent. In Milan and Madrid, prices even fell by 7.74 and 6.29 percent, respectively, since the start of trading.

In addition to China, other countries and the EU Commission have also prepared retaliatory measures after Trump raised tariffs to the highest level in more than a century the day before yesterday.

This is fueling fears of a global trade war. The investment bank JP Morgan now sees a 60 percent risk that the global economy could enter recession by the end of the year.

Trump wants to buy TikTok from China

China exports more goods to the world than any other country. According to the United States Census Bureau, the United States imported more than $439 billion worth of goods from China in 2024. The value of US exports to China was only $143.55 billion.

Trump recently promised China a tariff reduction if the government in Beijing gives the green light for the sale of the short video service TikTok. He would consider such a deal, the president told reporters aboard Air Force One on Thursday. According to him, a sale of TikTok is within reach, with several investors involved.