China has escalated trade tensions with the United States by announcing sweeping countermeasures, including a 34% tariff hike on U.S. imports and export restrictions on critical rare earth materials. The move, described as a response to recent U.S. tariffs, triggered immediate market turbulence, with the Dow Jones Industrial Average plunging over 1,000 points on Friday.
Tariffs Take Center Stage
The Customs Tariff Commission of the State Council confirmed the 34% additional duties on all U.S. products, effective April 10. Analysts warn the measure could further disrupt supply chains and raise costs for consumers.
WTO Lawsuit and Trade Restrictions
China’s Commerce Ministry filed a WTO lawsuit against U.S. trade policies while adding 11 U.S. companies, including Skydio, to its "unreliable entity list." Dual-use exports to 16 U.S. entities, such as High Point Aerotechnologies, were also banned.
Probes and Rare Earth Controls
The ministry launched anti-dumping and competitiveness investigations into U.S. and Indian medical CT tube imports. Separately, China imposed export controls on seven types of medium-to-heavy rare earths, critical for electronics and defense manufacturing.
Import Qualifications Suspended
The General Administration of Customs suspended six U.S. firms from exporting goods to China due to inspection and quarantine failures, tightening quality oversight amid rising bilateral friction.
