China Slaps 34% Additional Tariff on All US Products; Blocks 16 American Entities

China on April 4 retaliated with a 34% tariff on all US imports, further exacerbating trade tensions a day after United States (US) President Donald Trump announced to impose retaliatory tariffs across various countries. This was the first response by any country, thereby raising risks of a full-blown trade war.

While announcing its retaliatory tariffs, China’s State Council Tariff Commission said the US actions were “not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice”.

The Chinese Communist Party (CCP) has also decided to add 16 US entities to an export control list and classify 11 others as “unreliable” entities.

“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 said in a statement.

US President Donald Trump on April 4 announced a 34% reciprocal tariff on top of the existing 20% tariff on all Chinese imports. After returning to power in January, Trump has already levied two rounds of 10% additional tariffs on Chinese imports.

In his Rose Garden briefing, Trump acknowledged his respect for Chinese President Xi Jinping, stating: “I have great respect for President Xi, great respect for China, but they were taking tremendous advantage of us. They understand exactly what’s happening and … they’re going to fight.”

Notably, Trump showed up a chart listing US trading partners and the tariffs he claimed they imposed on the United States, justifying his latest round of reciprocal tariffs. He said that China imposes 67% tariffs on US imports, which is a result of currency manipulation and trade barriers.