China Imposes 34% Tariffs on U.S. Imports, Sending Oil Prices and Stocks Tumbling
Brent Crude Futures Drop to Three-Year Low
China to Impose 34% Tariffs on All U.S. Imports Amid Escalating Trade War
China announced on Friday that it will impose an additional 34% tariff on all U.S. imports starting April 10, in response to steep new U.S. levies on Chinese goods.
Following Beijing’s retaliatory move, oil prices plunged over 8%, approaching their lowest levels since the height of the COVID-19 crisis in 2021. Global markets also reacted sharply, with European stocks facing a second consecutive day of losses. The STOXX 600 index was on track for its worst single-day decline since the onset of the pandemic in 2020.
“For all U.S.-origin imported goods, an additional 34% tariff will be added to the existing rate,” China’s Finance Ministry said in a statement detailing the new measures.
Additionally, the Commerce Ministry announced export controls on seven rare earth elements, including gadolinium—used in MRI scans—and yttrium, found in various consumer electronics.
China also plans to lodge a complaint with the World Trade Organization (WTO) over the U.S. tariffs.
The escalation came after U.S. President Donald Trump triggered fears of a global trade war by enacting a 10% tariff on worldwide imports, along with harsher duties targeting key trade partners. A 34% tariff specifically aimed at Chinese goods added further tension to already strained relations.
China responded swiftly, pledging “countermeasures” to safeguard its interests.
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