On Friday, China responded aggressively to President Trump.
Following a swift series of policy declarations, which included a blanket 34 percent tariff, three governmental agencies in Beijing made it clear that China will not concede in the trade conflict initiated by Mr. Trump earlier this week with his significant tariffs on global imports.
The Finance Ministry of China announced its intention to implement a matching 34 percent tariff on U.S. imports, mirroring Mr. Trump’s tariff plan on Chinese goods.
In a separate statement, China’s Ministry of Commerce revealed that it would be adding 11 American firms to its “unreliable entities” list, effectively prohibiting them from conducting business within China or with Chinese firms. Furthermore, the ministry imposed strict restrictions on the export of seven rare earth elements, which are predominantly mined in China and are critical for various applications, such as electric vehicles and military technology.
Additionally, the commerce ministry has initiated two trade investigations into U.S. exports of medical imaging technology, a sector where the U.S. still maintains a competitive edge internationally.
China’s General Administration of Customs announced that it would suspend chicken imports from five of the largest American agricultural exporters, as well as sorghum imports from another company.
While China’s new tariffs will affect fewer items than Trump’s, this is primarily due to the imbalance in trade; China imports $147.8 billion worth of American products like semiconductors, energy, and agricultural goods but exports $426.9 billion worth of goods like smartphones, furniture, and toys to the U.S.
Despite Trump’s tariffs exempting certain major imports, such as semiconductors and pharmaceuticals, China’s tariffs do not include any exemptions.
The Finance Ministry of China condemned Mr. Trump’s tariffs, set to begin on Saturday and fully implemented by next Wednesday, stating, “This action by the U.S. contravenes international trade norms, severely infringes upon China’s legitimate rights and interests, and is an act of unilateral bullying.”
China’s tariffs are set to come into effect next Thursday—12 hours following the implementation of the American tariffs.
China’s limitations on rare earth metal exports seem to parallel a previous, two-month suspension of such shipments to Japan in 2010 amid a territorial conflict, although that embargo was never formally disclosed and was managed through direct orders to companies with export quotas.
This is an evolving story. Please check back for updates.
Reporting contributed by Claire Fu from Seoul.
