China Imposes 34% Tariffs on U.S. Goods in Retaliatory Trade Move

China announced on Friday that it will impose a 34% tariff on imported U.S. goods, effective April 10, in response to a similar levy announced earlier this week by U.S. President Donald Trump. The U.S. measure, part of Trump’s so-called "Liberation Day" package, adds a 34% duty on top of existing tariffs, potentially pushing the total rate on some Chinese goods to at least 54%.

China’s Commerce Ministry said it has filed a complaint with the World Trade Organization (WTO) over the U.S. tariffs, calling them a "typical unilateral bullying practice that endangers global economic and trade stability." Beijing accused Washington of "seriously violating WTO rules, undermining the multilateral trading system, and damaging the legitimate rights of WTO members."

Expanded Export Controls on Rare Earths

In a further escalation, China also unveiled new export restrictions on rare earth minerals, critical for manufacturing computer chips, electric vehicle batteries, and defense technologies. The list includes samarium and gadolinium—key materials used in aerospace, medical imaging, and military applications.

Additionally, China’s customs agency suspended poultry imports from two U.S. suppliers, Mountaire Farms of Delaware and Coastal Processing, citing repeated detection of furazolidone, a banned antibiotic. The government also added 27 U.S. firms to trade sanction lists, including defense contractor High Point Aerotechnologies and logistics firm Universal Logistics Holding.

Economic Fallout and Market Turmoil

The retaliatory measures sent shockwaves through global markets. U.S. stock futures plummeted Friday, with Dow Jones Industrial Average futures dropping 1,000 points (2.3%), while S&P 500 and Nasdaq Composite futures fell 2.4% and 2.7%, respectively. European and U.K. stocks also tumbled more than 3%, marking one of their worst trading days in years.

The latest tariffs apply to all U.S.-made goods, with pharmaceuticals, crude oil, liquefied natural gas (LNG), and agricultural products expected to face significant disruptions. This follows China’s earlier imposition of a 15% tariff on U.S. coal and LNG, as well as a 10% duty on crude oil and agricultural machinery.

Since Trump’s return to office in January, the U.S. has imposed two rounds of 10% tariffs on Chinese imports, citing concerns over illicit fentanyl trafficking. Combined with prior duties, some Chinese goods now face effective U.S. tariffs exceeding 54%.

The escalating trade war between the world’s two largest economies threatens to further destabilize global supply chains and economic relations, with no immediate resolution in sight.