China will soon impose an additional 34 per cent tariffs on all American imports in retaliation for Donald Trump‘s 34 per cent levy.
Beijing announced the measure today, the most serious escalation in a trade war with Trump that has fed fears of a recession and triggered a global stock market rout.
The new tariff, which comes into effect on April 10, matches the rate of the ‘reciprocal’ tariff imposed by Trump this week.
The measures are in addition to the existing tariffs already imposed on US goods.
Beijing’s commerce ministry also said it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.
Beijing also added 11 entities to the ‘unreliable entity’ list, which allows Beijing to take punitive actions against foreign entities.
China has also filed a lawsuit with the World Trade Organization (WTO) over sweeping US tariffs imposed on its exports.
It comes after Trump ignited a potentially ruinous global trade war this week by imposing 10 per cent levies on imports from around the world and harsh extra duties on key trading partners.
China will soon impose an additional 34 per cent tariffs on all American imports in retaliation for Donald Trump ‘s 34 per cent levy. Pictured: Chinese President Xi Jinping on March 28
Beijing swiftly vowed ‘countermeasures’ to protect its rights and interests after Washington this week imposed steep new levies on Chinese products.
‘For all imported goods originating from the US, an additional tariff of 34 per cent on top of the current applicable tariff rate will be imposed,’ China’s Finance Ministry said today.
Beijing’s Commerce Ministry also imposed export controls on seven rare earth elements – including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium – to the US, effective April 4.
‘The purpose of the Chinese government’s implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfill international obligations such as non-proliferation,’ the Commerce Ministry said in a statement.
The Commerce Ministry added: ‘China has filed a lawsuit under the WTO dispute settlement mechanism.’
It comes after the Commerce Ministry issued a statement yesterday condemning the US measures as a ‘typical act of unilateral bullying’.
Beijing urged the Trump Administration to ‘immediately’ remove the tariffs and encouraged the US to resolve dispute through ‘fair and equal dialogue’.
Nations from Canada to China have readied retaliation in an escalating trade war after Trump raised US tariff barriers to their highest level in more than a century this week, leading to a plunge in world financial markets.
In Japan, one of America’s top trading partners, Prime Minister Shigeru Ishiba said that the tariffs had created a ‘national crisis’ as a plunge in banking shares today set Tokyo’s stock market on course for its worst week in years.
Investment bank JP Morgan said it now sees a 60 per cent chance of the global economy entering recession by year end, up from 40 per cent previously.
This is a breaking news story. Check back for updates.
