China Imposes 34% Tariff on U.S. Imports in Trade War Escalation

China has implemented a 34% tariff on all goods imported from the United States, effective from 12:01 on April 10th. This move is a direct response to the U.S. government's unilateral tariff measures announced on April 2nd, which China has filed a lawsuit against through the WTO dispute settlement mechanism. The U.S. tariffs, dubbed "equal tariffs," have been criticized by China for violating WTO rules and undermining the multilateral trading system.

The Chinese Ministry of Commerce has also taken additional measures to restrict trade with the U.S. Sixteen U.S. entities, including High Point Aviation Technology, have been added to the export control list, prohibiting the export of dual-use items to these entities and halting any ongoing export activities. Additionally, eleven U.S. companies, such as Skydio, have been included in the Unreliable Entity List, barring them from engaging in import and export activities related to China and prohibiting new investments in the country.

China's actions are a clear indication of its resolve to counter the U.S. tariffs and protect its economic interests. The 34% tariff on U.S. imports is a significant escalation in the ongoing trade dispute, which has seen tariff increases from both sides. The U.S. has imposed tariffs on a wide range of goods from China and other major trading partners, citing trade imbalances and the need to protect domestic industries.

This escalation in trade tensions is likely to have far-reaching economic implications. The tariffs could lead to higher prices for consumers, reduced trade volumes, and disruptions in global supply chains. The situation is further complicated by the broader trade war involving other major economies, which could result in reduced economic growth, increased inflation, and potential job losses.

China's response to the U.S. tariffs underscores its commitment to defending the international economic order and supporting the multilateral trading system. The country has urged the U.S. to correct its wrongdoings and revoke the unilateral tariff measures, emphasizing its stance against unilateral bullying and its support for a rules-based trading system.