logo
China imposes 34% reciprocal tariffs on imports of US goods in retaliation for Trump's trade war

China imposes 34% reciprocal tariffs on imports of US goods in retaliation for Trump's trade war

Yahoo04-04-2025

China said Friday that it will impose reciprocal 34% tariffs on all imports from the United States from April 10, making good on a promise to strike back after US President Donald Trump escalated a global trade war.
On Wednesday, Trump unveiled an additional 34% tariff on all Chinese goods imported into the US, in a move poised to cause a major reset of relations and worsen trade tensions between the world's two largest economies.
'This practice of the US is not in line with international trade rules, seriously undermines China's legitimate rights and interests, and is a typical unilateral bullying practice,' China's State Council Tariff Commission said in a statement announcing its retaliatory tariffs.
Since returning to power in January, Trump had already levied two tranches of 10% additional duties on all Chinese imports, which the White House said was necessary to stem the flow of illicit fentanyl from the country to the US. Combined with pre-existing tariffs, that means Chinese goods arriving in the US would be effectively subject to tariffs of well over 54%.
China's retaliation against the latest round of US tariffs is more sweeping than its earlier reciprocal actions. Beijing had responded to previous levies swiftly but moderately, imposing retaliatory tariffs on targeted US imports, including agricultural products and fuel, while taking action against certain American firms and ramping up export controls.
The latest tariffs on Chinese goods are higher than what many analysts had expected and could fundamentally reshape relations, and roughly half a trillion dollars in trade, between the two economies after decades of interdependence.
As part of the retaliatory measures announced Friday, when hundreds of millions of people in China celebrated a major public holiday called the Tomb Sweeping Festival, the country also added 11 American companies to its 'unreliable entity list,' including drone manufacturers, and put export controls on 16 American companies to prohibit the export of Chinese dual-use items.
The Commerce Ministry announced anti-dumping investigations into imported medical CT X-ray tubes originating from the US and India.
In addition, Beijing also unveiled export controls on seven types of rare-earth minerals to the US, including samarium, gadolinium and terbium.
US stock futures plunged Friday after China announced it would retaliate. Dow futures fell 1,000 points, or 2.3%. The broader S&P 500 was set to open 2.4% lower and the tech-heavy Nasdaq Composite was on pace to start the day 2.7% lower. European and UK stocks were down more than 3% Friday, on pace for their worst performance in years.
Markets have been on edge for days. On Thursday, the Dow fell more than 1,600 points, or nearly 4%. The S&P 500 fell nearly 5% and the Nasdaq plunged nearly 6%. Each major US index recorded its worst performance in about five years, since the pandemic.
US Secretary of State Marco Rubio acknowledged Friday that 'markets are crashing' following the Trump administration's launch of sweeping global tariffs, but claimed 'the markets will adjust.'
'Businesses around the world, including in trade and global trade, they just need to know what the rules are. Once they know what the rules are, they will adjust to those rules,' Rubio told reporters at a meeting of NATO foreign ministers in Brussels.
The challenges are now multifold for businesses with supply chains rooted in China, which are left scrambling as they face not only the unexpectedly high US levies on Chinese imports, but also on other Asian countries due to Trump's broad-based tariffs.
The tariffs also come at a tough time for China's own slowing economy, with officials in recent weeks ramping up efforts to spur weak domestic consumption as they braced for the widening trade war.
Larry Hu, chief China economist at Macquarie Group, wrote in a Thursday research note that Trump has effectively raised the average US tariff rate on Chinese products to 69%. That's because the average rate on Chinese goods was already at 15% when Trump took office in January, he said.
Hu estimates that the current escalation could shave up to 2.5 percentage points off China's economic growth for this year. China is aiming to grow its economy by around 5% in 2025.
'The impact could manifest itself through multiple channels such as falling US demand for Chinese goods, the potential global economic slowdown and the hit on export re-routing,' Hu wrote.
Export re-routing refers to the practice of exporting goods that were previously imported into a country to another place without significant processing. Countries in Southeast Asia and Latin America were part of this trend during Trump's first term when China tried to mitigate the impact of tariffs imposed at that time.
This story has been updated with additional reporting and context.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

NATO Ally Scraps Purchase of US Black Hawk Helicopters
NATO Ally Scraps Purchase of US Black Hawk Helicopters

Newsweek

time22 minutes ago

  • Newsweek

NATO Ally Scraps Purchase of US Black Hawk Helicopters

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Poland has scrapped plans to buy more S-70i Black Hawk helicopters as Warsaw rethinks its strategy for fighting a battle-hardened Russia pouring massive investment into its military. Why It Matters Poland has become a military powerhouse, leading the NATO alliance on defense spending. The country, which is situated on NATO's eastern flank, has felt the reverberations of more than three years of war in Ukraine, repeatedly scrambling fighter jets in response to intensive Russian airstrikes on parts of western Ukraine. Warsaw has been one of Kyiv's most strident supporters. NATO officials, particularly those from country's forming NATO's eastern edge, have increasingly warned Moscow could mount an attack against the alliance in the coming years, particularly if the U.S. succeeds in brokering a ceasefire in Ukraine. What To Know The Polish military changed its "priorities" for its upcoming purchases after "intensive" analysis, said General Wiesław Kukuła, the Chief of the General Staff for the Polish armed forces. U.S. Army Black Hawk helicopters support soldiers during the NATO Noble Jump exercise on a training range near Swietoszow Zagan in Poland on June 18, 2015. U.S. Army Black Hawk helicopters support soldiers during the NATO Noble Jump exercise on a training range near Swietoszow Zagan in Poland on June 18, 2015. AP Photo/Alik Keplicz, file "The aim of these changes is to better adapt to the challenges of the future battlefield," Kukuła told reporters on Friday. Warsaw will prioritize training and combat helicopters, as well as multi-use helicopters able to land on ships, heavy transport helicopters for the country's land forces and search and rescue aircraft, Kukuła added. Poland may look at buying other equipment, like drones or tanks, rather than the S-70i multirole helicopter, Grzegorz Polak, a spokesperson for the Polish Armament Agency, told Reuters. The war in Ukraine has spurred on drone advancement at astonishing speeds, while both sides have still relied heavily on the use of tanks and armored vehicles. Poland's previous government said in mid-2023 it was starting the process to buy more Black Hawk helicopters from PZL Mielec, a Polish branch of Lockheed Martin. Secretary of State for Poland's Ministry of National Defense Paweł Bejda said reports that a contract for the Black Hawk helicopters had been "canceled" were false, but the country's Armament Agency had decided to "terminate the procurement process." Kukuła pointed on Friday to the Polish purchase of 32 next-generation F-35 fighter jets and tens of advanced Apache helicopters that would soon "land on Polish soil" as part of preparations for the "future battlefield." What People Are Saying Paweł Bejda, Secretary of State for Poland's Ministry of National Defense, said during a press conference on Friday: "The geopolitical situation, the situation in the east—the war in Ukraine, what Russia is currently buying, equipping its army—and everything that our air forces are carrying out during tasks connected to the NATO system, is being analyzed." Brigadier General Artur Kuptel, the head of Poland's Armaments Agency, told the media: "The priorities we have heard about today will give light for the coming days, for the coming months, in terms of the directions of activities in the area of ​​helicopter aviation." What Happens Next Poland ordered nearly 100 AH-64E advanced Apache helicopters from Boeing in mid-2024, which the aerospace giant said would "strengthen Poland's operational capability and interoperability with the U.S., NATO and allied nations." Warsaw is expected to receive its first F-35 fifth-generation fighter jets from the U.S. next year.

3 Monster Stocks -- including Nvidia -- to Hold for the Next 10 Years
3 Monster Stocks -- including Nvidia -- to Hold for the Next 10 Years

Yahoo

time23 minutes ago

  • Yahoo

3 Monster Stocks -- including Nvidia -- to Hold for the Next 10 Years

Nvidia has been growing by an average of more than 70% annually. Intuitive Surgical is the 800-pound gorilla in the robotic surgery world. Microsoft is huge and getting bigger -- while paying a dividend. 10 stocks we like better than Intuitive Surgical › The S&P 500 index tracks the stock performance of America's biggest companies, and it has averaged annual gains of roughly 10% over multiple decades. That's pretty darn good performance, enough to more than quintuple an investment over 15 years for those who purchased exchange-traded funds (ETFs) mirroring the index. Some individual stocks, though, have done better than that -- much better. In the table below, you'll see that the S&P 500 has been growing at a much faster rate over the past 15 years compared to its long-term 10% average. That outsized performance is due, in part, to the eye-popping average annual gains of some of its components, including what some might label as monster stocks, that have managed monster performances. Average Annual Return SPDR S&P 500 ETF (NYSEMKT: SPY) 14.85% 12.90% 14.18% Nvidia (NASDAQ: NVDA) 73.46% 73.83% 50.57% Intuitive Surgical (NASDAQ: ISRG) 23.08% 26.07% 20.03% Microsoft (NASDAQ: MSFT) 20.78% 26.64% 21.75% Data source: as of June 6, 2025. These kinds of returns are not guaranteed to continue. Many dynamically growing companies see their growth rates slow as they become massive companies. But a select few manage to keep up that outsized growth. Here's a closer look at three companies with this potential and some reasons why you might want to buy and/or keep holding any of them. Nvidia got its start as a maker of semiconductor chips for the videogame industry, but it has expanded its scope in the past decade. A side hustle into chip design catered to aid cryptocurrency mining has led to the development of chips and software that are now fueling the artificial intelligence (AI) boom, and it is churning out gobs of chips for data centers -- enough to be the world's leading supplier of graphics processing units for the data centers used in cloud computing. Data centers have replaced gaming as Nvidia's focus, and the company raked in $39 billion in revenue in fiscal 2026's first quarter from its data center business -- fully 89% of total revenue. Better still, CEO Jensen Huang forecasts that AI infrastructure spending could top $1 trillion annually within a few years, and he sees Nvidia capturing most of that business. Despite the monster performance over the past several years, Nvidia stock doesn't appear to be wildly overvalued at recent levels. Its recent forward-looking price-to-earnings (P/E) ratio of 33, for example, is well below the five-year average of 40. Consider buying Nvidia to hold for the next 10 years or more to take advantage of this forecasted growth. Intuitive Surgical is another strong stock performer, though it's not as attractively valued as Nvidia lately. Its forward P/E was recently at a steep 72, well above the five-year average of 56 (which is steep as well). So think twice before buying at these levels and look for opportunities to buy on the dip. But if you already own the stock, you might want to hold on. Intuitive Surgical is a leader in robotic surgery equipment. It has more than 8,600 of its million-dollar-plus da Vinci robotic surgery systems installed in 71 countries. Together, they've been used to perform more than 14 million medical procedures. I'm a shareholder and I'm hanging on because I expect the company to keep selling and installing surgical systems, and to keep raking in profits from doing so. Notably, Intuitive Surgical derives 84% of its revenue not from the systems themselves, but from dependable recurring sales of servicing, supplies, and accessories for the machines. Microsoft is a tech giant with many growing operations contributing to its steady growth. It's home to the dominant Office 365 suite of applications, the Azure cloud computing platform, the Xbox gaming platform, the Windows operating system, and even the business-oriented social media giant LinkedIn, among other ventures. Microsoft is huge (its market value hovers around $3.5 trillion), but it's still growing at a fairly rapid clip, with some of its recent growth largely attributable to its AI-related ventures. In its third quarter of fiscal 2025, revenue was up by 13% year over year, and net income rose by 18%. Its intelligent cloud division grew by 21%. The company is generating more cash than it needs to spend on growth, so it's paying shareholders a dividend that recently yielded 0.71%. (That might not seem like a lot, but the yield is pushed down because of strong share price performance and the dividend is growing briskly -- up from $2.09 per share in 2020 to $3.24 per share currently.) Despite the strong share price performance, its stock remains appealingly valued, too, with a recent forward P/E of 31 only a bit above the five-year average of 30. Given the steady growth, the stock seems well worth hanging on to for the next decade -- and beyond. Before you buy stock in Intuitive Surgical, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Surgical wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Selena Maranjian has positions in Intuitive Surgical, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Intuitive Surgical, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Monster Stocks -- including Nvidia -- to Hold for the Next 10 Years was originally published by The Motley Fool

From Visas to Jets, US and China Are Finding New Trade Leverage
From Visas to Jets, US and China Are Finding New Trade Leverage

Bloomberg

time23 minutes ago

  • Bloomberg

From Visas to Jets, US and China Are Finding New Trade Leverage

Donald Trump brought many of the same grievances to his second trade war against China, but the economic battleground that's emerged since then is making it harder to avoid a rupture this time around. While tariffs kicked off the dispute, it's the new trade weapons being unsheathed by both sides that have come to define the latest standoff. And if the damage done so far is any indication, the scars will prove more enduring — no matter the outcome of trade talks in London that will continue into a second day on Tuesday.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store