In a bold move that is sending shockwaves around the world, China announced it would levy a 34% tariff on all U.S. imports starting April 10. When added to the tariffs already imposed by the United States, some American products now face a total tariff of 54%. This step, viewed as a direct counter to earlier U.S. measures, highlights just how high the stakes have become in this trade war.
China’s Ministry of Finance didn’t mince words, labeling U.S. tariffs a violation of World Trade Organization rules and accusing Washington of unilateral bullying. Beijing argues that these tariffs not only infringe on China’s rights but also risk destabilizing global supply chains and economic growth. The message is clear: China is willing to take aggressive action to protect its national security and maintain international commitments.
The trade dispute between the United States and China is now a currency war as well, and, judging by the events of the past few days, it could well expand in other directions.Photograph by Pablo Martinez Monsivais / AP / Shutterstock [Photograph by Pablo Martinez Monsivais / AP / Shutterstock]
Alongside the intensified tariffs, Beijing has introduced strict export controls. Now, medium and heavy rare earth minerals—such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—face severe restrictions. These minerals are the backbone of advanced electronics, electric vehicles, and critical defense systems, making them vital for U.S. technology and military capabilities.
The Commerce Ministry has further targeted U.S. business interests. Sixteen American companies have been added to an export control list that hampers shipments of products with both civilian and military uses. Moreover, 11 U.S. firms, including Skydio Inc. and BRINC Drones, have been tagged as unreliable due to their arms-related dealings with Taiwan, potentially opening the door for more punitive measures.
The agricultural sector is also feeling the pinch. Immediate bans have been placed on U.S. food products, including sorghum from C&D (USA) Inc., poultry, and bonemeal, citing health and quality issues. For many families and business owners who depend on stable food imports and exports, these moves are deeply unsettling.
Not content with economic pressure alone, Beijing has escalated the dispute to the international arena by formally filing a complaint with the World Trade Organization. Chinese authorities argue that U.S. tariffs breach global trade rules. This use of the WTO underscores China’s commitment to countering what it sees as an unfair and coercive approach by the United States.
Market reactions have been swift and severe. U.S. stock futures nosedived amid growing fears that the trade conflict could spiral into a prolonged economic crisis. Major companies in tech and manufacturing, with deep ties to Chinese supply chains, are already facing significant pressure. This unease has spread globally, with Japan’s Prime Minister Shigeru Ishiba describing the situation as a national crisis and European markets enduring one of their toughest weeks.
On the U.S. side, strong voices from the political arena rallied behind the protective stance. Secretary of State Marco Rubio and others insist that, despite the dramatic market downturns, the economy will eventually adjust to this new trade reality. Meanwhile, President Trump took to social media, dismissing China’s actions as a knee-jerk reaction driven by panic and warning that China cannot afford such missteps without serious consequences.
This latest chapter in the ongoing U.S.-China trade war starkly illustrates how interconnected—and precarious—the global economy has become. For business owners, families, and workers on both sides of the Pacific, the changes are not just abstract numbers but realities that affect livelihoods, jobs, and everyday life. As nations adjust strategies and forge new alliances, all eyes remain on how these actions will reshape the future of global trade.