In response to the escalating U.S. tariffs—currently at 145% on Chinese imports—China has implemented a series of retaliatory measures aimed at exerting economic pressure on the United States.Latest news & breaking headlines+5The Australian+5Yahoo Finance+5
1. Increased Tariffs on U.S. Goods
China has significantly raised its tariffs on U.S. products, increasing the rate from 34% to 84% as of April 10, 2025. Subsequently, on April 12, the State Council Tariff Commission announced a further increase to 125%, matching the U.S.’s tariff rate. These measures are designed to impact key American exports, particularly in agriculture and manufacturing sectors.Reuters+7Home | Holland & Knight+7CBS News+7China Briefing+1China Briefing+1
2. Export Controls on Critical Materials
China has imposed export restrictions on certain rare earth elements and other critical materials essential for U.S. industries, including defense and technology sectors. These controls aim to disrupt supply chains and exert leverage in the ongoing trade dispute.Wikipedia
3. Targeting U.S. Companies
Beijing has expanded its Export Control List to include additional U.S. entities, particularly those in defense-related industries, prohibiting the export of dual-use items to these companies. This move restricts the operations of affected firms within China and signals a broader strategy to counter U.S. economic actions.Home | Holland & Knight+1Reuters+1
4. Diversifying Trade Partnerships
In light of the trade tensions, China is actively seeking to strengthen economic ties with other global partners, including nations in Asia and Europe. Efforts include lifting sanctions on EU lawmakers and pursuing trade agreements to mitigate the impact of reduced trade with the U.S. The Washington Post
5. Selective Tariff Exemptions
Despite the broad tariff increases, China has introduced exemptions for certain U.S. goods, suggesting a strategic approach to minimize domestic economic disruption while maintaining pressure on the U.S. Yahoo Finance
These retaliatory actions by China reflect a multifaceted strategy to counter U.S. tariffs, combining economic measures with diplomatic outreach to other global partners.
