China retaliates against US with new tariffs and rare earth export controls, escalating trade tensions

From Yahoo Finance: 2025-04-07 05:30:00

China has retaliated against US tariffs with a 34% increase on all US goods and export restrictions on rare earth elements. The Chinese Finance Ministry criticized the move as unilateral bullying. This comes after Trump raised tariffs on Chinese goods by 34%, totaling a 54% increase this year.

In addition to previous tariffs, China imposed new levies on US agricultural and energy products. Export controls on rare earths crucial for industries like defense and technology were implemented. China added US entities to its export control list, restricting exports to these companies.

The Chinese yuan weakened, stock markets fell following Trump’s reciprocal tariffs. Trump tasked the US Trade Representative to review China’s adherence to the 2020 trade agreement. Last month, Trump invoked emergency powers to boost domestic output of critical minerals to reduce reliance on foreign sources, especially China.

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