China has announced it will impose a 34% tariff on US goods starting April 10, deepening the rift in an escalating trade war with Washington.
The move comes in direct response to the US government’s decision to slap a sweeping 54% tariff on Chinese imports – an action Beijing says violates global trade rules.
In a statement issued by the China’s finance ministry condemned the US tariffs as being “not in line with international trade rules.” Officials said the new Chinese measures are aimed at defending national interests and preserving the integrity of the multilateral trading system.
A spokesperson from China’s commerce ministry confirmed that the nation has formally filed a lawsuit with the World Trade Organisation (WTO), accusing the United States of breaching international commitments.
“The US-imposed tariff seriously violates WTO rules, damages the legitimate rights and interests of WTO members, and undermines the rules-based multilateral trading system,” the spokesperson said. “It is a typical unilateral bullying practice that endangers global economic stability. China firmly opposes this.”
The China Association of Automobile Manufacturers (CAAM) also weighed in on the issue, denouncing the US decision to impose an additional 25% tariff on imported car and certain car parts. The organisation called the move a “blatant act of unilateralism” and warned of its far-reaching consequences.
“The auto industry is highly internationalised,” CAAM said in a statement. “This action will severely disrupt global supply chains, raise costs for consumers, and hamper global economic recovery.”
CAAM urged the US to reconsider its decision and engage in trade discussions with “an open, inclusive, and cooperative attitude.”
The aggressive US tariff hike, unveiled by President Donald Trump on Wednesday, sent shockwaves through global markets with Wall Street suffering its worst day since the onset of the COVID-19 pandemic in 2020, as investors reacted to the growing threat of a global economic slowdown.
The ripple effect has reached Europe as well. In the UK, business secretary Jonathan Reynolds told Parliament that the government is preparing a list of US products to target with retaliatory tariffs in response to the 10% duties Washington is now applying to nearly all UK exports to the US.
Reynolds said ministers are consulting with businesses to assess the impact and, if no agreement is reached by May 1 to reduce the tariffs, Britain could respond with its own countermeasures.
“This is a firming of the government’s position,” Reynolds said, noting that securing a favourable trade deal with the US remains a top priority.