BANGKOK – China is imposing retaliatory tariffs on U.S. goods a day after President Donald Trump announced sweeping taxes on trade with most countries – the latest escalation of a trade war that could stunt economic growth worldwide.
China’s State Council Tariff Commission said an additional 34% tariff on imports from the U.S. will be imposed from April 10 – matching the new U.S. tariff on China.
“This practice of the U.S. is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” the commission said in a statement announcing its retaliatory tariffs.
China, the world’s second-largest economy after the U.S., was already subject to a 20% tariff the U.S. imposed earlier this year when Trump demanded the country buy more U.S. goods and stop the flow of the deadly synthetic opioid fentanyl.
Stock markets have cratered worldwide after Trump’s tariff announcement, indicating fears of a global recession. U.S. stock futures predicted markets would fall further Friday following China’s announcement.
Southeast Asian nations were some of the hardest hit by the new U.S. tariffs, at nearly 50% in some cases.
Some corporations moved production to Southeast Asian nations such as Vietnam and Thailand from China after the first Trump administration, from 2016 to 2020, imposed tariffs on its global rival.
When he announced the latest tariffs at a White House event, Trump singled out China as one of the “nations that treat us badly,” according to news agency reports.
The U.S. has a higher trade deficit with China than with any other country – US$295.4 billion last year.
Trump’s tariff shock therapy is aimed at encouraging a revival of American manufacturing, which fell as a share of the economy and employment over several decades of global free trade and competition from production in lower-cost countries.
Any changes could take years as many U.S. corporations have made substantial investments in overseas production. Manufacturing in the U.S., like elsewhere, also is reliant on components produced in other countries.
Edited by Taejun Kang.
This content originally appeared on Radio Free Asia and was authored by Stephen Wright for RFA.