China has announced many measures against the tariffs imposed by President Donald Trump. This includes additional tariffs of 34% on all goods and curbs on exports of some rare earths, expanding the trade war.
Trump announced Wednesday that it will be hit by tariffs of 34%, plus the 20% that China imposed earlier this year, bringing the total new tax to 54%.
On Friday, China’s finance ministry said additional tariffs would be imposed from April 10th. Beijing previously imposed a 15% tariff on US coal and liquefied natural gas (LNG) imports in Washington’s 10% tax retaliation on Chinese goods.
It also announced strict export controls on key minerals and businesses, limiting what can be exchanged for the US.
“The purpose of implementing Chinese government’s export restrictions on related items in accordance with the law is to better protect national security and interests and fulfill international obligations such as non-proliferation,” the Commerce Department said in a statement.
On Friday morning, Trump responded to the slate of retaliation with a fiery social media post written in all capital letters.
“China got it wrong, they panic. Trump wrote about the true society.
Complaints with WTO
However, China has said it opened a formal complaint with the World Trade Organization (WTO) on Friday against new US tariffs, moving forward by opposing Trump’s aggressive trade policy.
As part of the complaint, Beijing argued that the measure violated WTO rules and called for consultation.
“China has filed a WTO complaint regarding US measures,” China’s permanent mission to the World Trade Organization said in a statement.
Beijing also imposed drastic export controls to limit the exchange of goods and services with the United States. It was involved in the export of media and heavy rare earths to the United States, including samarium, gadolinium, terbium, desprosium, lutetium, scandium, yttrium.
Others were aiming for our business. China has added 16 US companies to its export control list. This prohibits the export of double-use items to affected companies.
Another 11 US companies are included in the “untrusted entities” list, allowing Beijing to take punitive actions against foreign entities. Targeted companies include SkyDio Inc and Brinc Drones being sold to democratically governed Taiwan through arms sales.
China’s Commerce Ministry said targeted companies have seriously “weakened” China’s national sovereignty, security and development interests, and will be banned from new investment, import and export activities in China.
Agricultural trade was similarly a hit. China’s customs imposed an immediate suspension on sorghum imports from Grain Exporter C&D (USA) Inc, as well as a poultry and bone meal for three US companies.
Then there was the threat of further regulatory action. Beijing has announced that it has considered importing certain medical CT tubes from the US and India and has begun anti-damping probes.
He also said he would pursue a broader investigation into how the competitiveness of the healthcare industry has been affected by the import of medical CT tubes.
How the economy is responding
US stock futures fell sharply on Friday, signaling more losses on Wall Street as the Trump administration’s fundamental taxation knocked $2.4 trillion from US stocks.
Large tech stocks have declined in pre-market trading, with companies like Apple and Nvidia having a major exposure to China and Taiwan to manufacture their products.
In Japan, the top US trading partner, Prime Minister Isbaiba said tariffs have created a “national crisis” as bank stocks plunged on Friday, setting up the Tokyo stock market for many years. European stocks were also directed towards their biggest weekly losses in three years.
However, U.S. Secretary of State Marco Rubio challenged the economic crash on Friday, telling reporters that the market will respond to changes and adjust.
“Their economy hasn’t crashed. Their markets are responding to dramatic changes in the global order in terms of trade,” he told a media conference in Brussels. “The market will be adjusted.”
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