China to impose retaliatory tariffs on US
Chinese Retaliatory Tariffs on the US Begin Today
Following President Trump’s announcement of “reciprocal tariffs”, several countries—including the US’s largest trading partners—have imposed retaliatory measures. Last week, China announced retaliatory tariffs of 34% on a range of US imports, targeting sectors such as agriculture, technology, and industrial goods.
China’s decision aligns with actions taken by other countries, including Canada, the EU, and Brazil, which are also devising measures against US trade policies. Additionally, China has introduced export restrictions on rare earth minerals and added 11 US companies to its unreliable entities list.
In the short term, these tariffs are expected to disrupt bilateral trade, raising costs for US consumers and businesses while potentially triggering further economic retaliation. The US has threatened an additional 50% tariff if China maintains the 34% rate, potentially leading to a tit-for-tat cycle between major trading partners. In the long term, many countries are likely to seek bilateral negotiations to eliminate tariffs and secure exemptions for strategic products. This climate of uncertainty expected to realign global supply chains and prompt a diversification away from US- and China-dominated trade networks in the long term.
