Chicago – April 04, 2025
China has responded firmly to President Trump’s recent tariffs, signaling it will not back down in the escalating trade war. On Friday evening in Beijing, Chinese authorities rolled out a series of retaliatory measures, including matching Trump’s 34% tariffs on U.S. goods and targeting several American companies.
The Chinese Finance Ministry confirmed it would impose equivalent tariffs on American imports, while the General Administration of Customs said it would stop chicken imports from five major U.S. agricultural exporters and suspend sorghum imports from another. Additionally, China’s market regulator announced an antitrust investigation into DuPont’s China division, although the company has yet to respond.
While Trump’s tariffs cover a wider range of products due to the U.S. importing significantly more from China, Beijing’s tariffs have no exemptions. Last year, the U.S. imported $426.9 billion worth of Chinese products, while China imported $147.8 billion in goods from the U.S.
Unlike Trump’s policy, which exempted items like semiconductors and pharmaceuticals, China’s measures target all goods without exception. These countermeasures caused a sharp drop in U.S. stock markets, with the S&P 500 opening 2.5% lower on Friday after suffering its worst single-day decline since 2020 the day before.
China’s Finance Ministry issued a strong statement condemning the new U.S. tariffs, calling them a violation of international trade norms and an act of “unilateral bullying.” The Chinese tariffs are scheduled to begin 12 hours after the U.S. ones take effect.
President Trump, responding on Truth Social, accused China of making a strategic mistake, saying, “CHINA PLAYED IT WRONG, THEY PANICKED — THE ONE THING THEY CANNOT AFFORD TO DO!”
Jude Blanchette of the RAND China Research Center stated that China’s tough response was to be expected, given the scale of Trump’s tariffs. He added that Beijing no longer sees diplomacy with the Trump administration as an effective way to avoid a full-blown trade war.
This tit-for-tat approach reduces the likelihood of any near-term meeting between Trump and Chinese leader Xi Jinping, especially without a clear agenda and resolved disputes.
Wang Dong from Peking University noted that China now feels more equipped to handle a trade conflict than it did during Trump’s first term. He added that China is betting domestic pressure will force Trump to reconsider his tariff strategy due to potential economic harm.
Separately, China’s Ministry of Commerce blacklisted 11 American firms, barring them from operating in the Chinese market or working with local companies. The ministry also imposed restrictions on the export of seven rare earth elements critical to industries like electric vehicles and defense.
In addition, China launched two trade investigations into U.S. exports of medical imaging equipment a sector where the U.S. still holds a competitive edge globally.
