China has retaliated against Trump’s new tariffs with a 34% levy on all US goods and export restrictions on rare earth elements, deepening the trade war between the world’s two largest economies.
The Trump administration announced a new round of tariffs on China on April 3, dubbed an “all-around blockade,” as part of Trump’s campaign promise to reduce U.S. reliance on Chinese imports. The Chinese government responded quickly, announcing it would impose an additional 34% tariff on all U.S. goods and restrict exports of medium and heavy rare earth elements to the U.S., including samarium, gadolinium, and terbium. It was Beijing’s toughest response yet to the U.S. leader’s trade war, and is the same rate Trump ordered this week on Chinese products flowing into the U.S. “It’s a gift to reciprocate,” Chinese Foreign Ministry spokesman Guo Jiakun said, citing a Chinese proverb. Meanwhile, Trump also said he could still negotiate with China over the sale of TikTok, and has extended the deadline for the social media app to be separated from its Chinese parent company by another 75 days.
The trade dispute is not limited to China and the United States. The Trump administration also plans to impose tariffs on multiple countries and regions and will cancel temporary tariff exemptions on certain goods from Mexico and Canada, which has caused concern among many industries and companies. Analysts believe that the new round of trade war may have a profound impact on the global trade pattern, especially when the global economy is still in the recovery stage. This move has also triggered discussions about the potential impact of protectionist policies on economic growth and inflation. For the Chinese American community, this tension may further exacerbate public prejudice against Chinese people. Experts call on the community to remain vigilant while strengthening communication and understanding with mainstream society.