China has announced that it will impose a 34% tariff on all goods imported from the United States starting April 10, a direct response to the US government's new 34% tariff on Chinese goods introduced earlier this week by President Donald Trump as part of his "Liberation Day" economic package.
The new US tariffs come on top of previously existing duties, pushing total tariff costs to at least 54% in some cases, and raising concerns across global markets and among small and medium-sized enterprises (SMEs), many of whom rely on international trade to survive.
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In a strongly worded statement, China's Ministry of Commerce condemned the US action as a "unilateral bullying practice" that threatens the stability of global trade and economic order, while also confirming that it had filed a formal complaint with the World Trade Organization (WTO), accusing Washington of violating multilateral trade rules and undermining the rights of other countries.
Beyond tariffs, China also announced new export restrictions on critical rare earth elements like samarium, used in aerospace and defense, and gadolinium, vital in medical imaging such as MRI scans—moves that are likely to impact tech, health, and manufacturing sectors around the world.
The trade dispute escalated further as China suspended chicken imports from two US suppliers, Mountaire Farms of Delaware and Coastal Processing, after detecting a banned drug in their shipments, and added 27 American firms to a sanctions list, including companies involved in logistics and defense technology.
Earlier in February, China had already imposed a 15% tariff on US coal and liquefied natural gas and added a 10% charge on crude oil, agricultural machinery, and large-engine cars, and with the latest move covering all American-made products, US exports of pharmaceuticals, petroleum gas, LNG, and agricultural produce now face new pressure.
The announcement sent global markets tumbling, with the S&P 500 falling 4.8%, its biggest drop since June 2020, while the Nasdaq 100 slid 5.4%; European indexes also plummeted, with Germany's DAX dropping nearly 5%, France's CAC 40 down 4%, and the UK's FTSE 100 shedding 4.3%, and futures showing further declines.
As the world's two biggest economies square off in a tit-for-tat tariff war, the ripple effect is being felt far beyond government halls and trading desks—small businesses, especially those dependent on global supply chains or raw materials, are now forced to navigate a costlier, riskier, and more uncertain trade landscape.
