China has imposed retaliatory tariffs of 34% on US goods, marking the most serious escalation yet in a trade war with president Donald Trump that has rattled global markets.
The move comes in response to Washington’s decision to raise tariffs on Chinese imports to 54%, a step that Beijing condemned as a violation of World Trade Organization (WTO) rules.
Alongside the tariffs, China has filed a formal complaint with the WTO, arguing that the new US measures undermine global trade norms. The WTO Secretariat confirmed receipt of China’s request for consultations, the first step in a dispute resolution process that could ultimately lead to adjudication.
If no agreement is reached within 60 days, China could seek a formal ruling from the WTO’s Dispute Settlement Body.
The total US levies on Chinese products now stand at 54%, inching closer to the 60% threshold Trump had previously threatened.
In a further escalation, China’s Commerce Ministry announced new export controls on rare earth minerals, including samarium, used in aerospace and defense, and gadolinium, a key component in MRI machines. The restrictions could disrupt supply chains for critical technologies such as semiconductors and electric vehicles, where China holds a dominant position.
Meanwhile, China's customs administration said it had suspended imports of chicken from certain US suppliers after detecting a banned antibiotic in shipments.
The trade standoff has raised concerns about broader economic fallout, particularly in the technology sector. Dan Ives, an analyst at Wedbush, warned that the tariffs could set the US tech industry back a decade, increase consumer prices on electronics by 40% to 50%, and severely disrupt supply chains.
“If these tariffs stay in place, tech earnings could drop at least 15%, and the economy faces a real risk of recession or stagflation,” Ives said, adding that negotiations are urgently needed to avoid “dark days ahead” for the sector.
China has called on the US to immediately cancel the tariffs.