China said Friday it will impose reciprocal 34% tariffs on all imports from the United States, in the first retaliatory action against President Donald Trump‘s worldwide tariffs plan.
The move escalates a trade war between the world’s two largest economies. The levies will be effective April 10.
“This practice of the U.S. is not in line with international trade rules, undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” China’s finance ministry said in a statement.
The Trump administration imposed a 10% minimum tariff on all imports coming into the country and even higher tariffs on the European Union and dozens of other top American trading partners like China.
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The White House says its tariffs plan is aimed at resetting global trade practices that have for decades favored countries overseas, led to major U.S. job losses and gutted U.S. manufacturing. Dozens of world leaders have reacted angrily to the move. It has caused turmoil in U.S. and global financial markets.
China was already subject to a 20% tariff when Tump announced the additional levies on Wednesday during a ceremony in the Rose Garden at the White House. Beijing now has an effective U.S. import tax rate of 54%, one of the highest for any major American trading partner. The new U.S. tariff rate on China comes into effect on April 9.
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Trump has described the tariffs as a “declaration of economic independence.” Economists have expressed alarm over what they could mean for the U.S. and other economies around the world. Fitch Ratings, a credit ratings agency, says the tariffs could tip economies into recession, with higher prices for goods and job losses.
In emailed comments, Tony Pelli of BSI, a business consultancy, said that if the tariffs stay in place it could mean major changes for global supply chains. But that’s a big “if,” he said.
“For now, companies are rushing to assess where they are most affected, and we may start seeing price increases within a few weeks as current inventory runs out.”
