TAIPEI, Taiwan — China is responding aggressively to U.S. tariffs implemented by President Trump, including a substantial 34% tax on all U.S. imports set to take effect next week.
This robust counteraction indicates a level of preparation that puts Chinese exports at risk while inflicting harm on U.S. exporters, potentially serving as leverage for future discussions.
The new tariffs, announced Friday and effective Thursday, correspond to those imposed by Trump on Chinese goods. These follow two earlier rounds of 10% tariffs introduced in February and March, linked to China’s alleged involvement in the fentanyl crisis. In addition to the tariffs, China has enacted tighter export controls on rare earth minerals critical for various technologies and has initiated legal action at the World Trade Organization.
Beijing has also halted imports of sorghum, poultry, and bonemeal from several U.S. companies, while adding over two dozen firms to a trade-restricted list and launching an anti-monopoly investigation into a major chemical company.
The swift imposition of tariffs and restrictions recalls earlier trade conflicts during Trump’s presidency, which saw ongoing tensions in U.S.-China relations that have persisted into the current administration. During that time, China responded with duties totaling 15% on coal and liquefied natural gas, and 10% on crude oil, agricultural machinery, and large-engine vehicles from the U.S.
More recently, China initiated an anti-monopoly probe into a prominent technology company and added a U.S. fashion conglomerate to its “unreliable entity” list. Restrictions on the export of key rare metals vital for the defense and clean energy sectors have also been imposed.
As these tensions threaten to escalate into a full-scale trade war, let’s review key developments in the ongoing U.S.-China trade dispute:
Shortly after taking office, Trump enacted an executive order aimed at tighter tariff enforcement against dumping practices.
During an official visit to Beijing, Trump and Xi Jinping agreed to a trade plan aimed at reducing the U.S. trade deficit, which ultimately failed by mid-year.
Trump initiated an investigation into alleged Chinese theft of U.S. intellectual property, which was estimated to cost the U.S. economy approximately $600 billion annually.
The U.S. subsequently imposed a 30% tariff on solar panels, predominantly sourced from China.
China retaliated with tariffs on $3 billion worth of U.S. imports, targeting key agricultural and industrial products.
The U.S. escalated with a 25% tariff on $50 billion worth of Chinese goods, prompting a similar response from China affecting various American exports.
The ongoing cycle included several rounds of tariffs that influenced over $250 billion in Chinese imports and more than $110 billion in U.S. goods, with some tariffs exceeding 25%.
Despite efforts to negotiate a deal, Washington and Beijing struggled to finalize terms, leading to increased tariffs from the U.S. after talks collapsed.
Furthermore, the U.S. has prohibited a major Chinese technology firm from sourcing components from American suppliers.
Following a brief recommitment to talks, the two nations signed a Phase One trade deal, with China promising significant purchases of U.S. goods, although adherence to this agreement has been questioned.
The current administration has maintained most of the tariffs established by its predecessor, along with introducing new restrictions on semiconductor sales to China, set to expand into late 2024.
As both nations navigate this complex trade landscape, the imposition of new tariffs and strict retaliatory measures signals a continued and intensifying trade conflict.
