China hits back at Trump tariffs with extra 34% tax on US goods
China has filed a lawsuit with the World Trade Organization (WTO) against the US tariffs
China has announced that it will impose an additional 34% tariff on all US goods, effective from 10 April.
The decision comes as a response to the latest trade measures taken by the United States, which China claims are "not in line with international trade rules," according to its finance ministry, reports BBC.
This move follows US President Donald Trump's announcement of a 54% tariff on Chinese products, which includes earlier duties already in place.
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The escalating trade tensions have sent global markets tumbling for a second consecutive day, fuelling fears of a potential global economic downturn.
London's FTSE 100 index saw a decline at market opening, mirroring losses in Asian markets overnight. Despite these concerns, Trump has defended his trade policies, stating that the tariff rollout is progressing "very well" and that the US economy is set to "boom."
However, US markets closed on Thursday with the largest single-day loss since the pandemic began in 2020.
Meanwhile, a UK Treasury minister told the BBC that Britain is working "at pace" to finalize a trade agreement with the US amid ongoing global trade uncertainties.
The international response to the US tariffs has been swift, with leaders from Beijing to Brussels pledging to counteract the minimum 10% tariffs set to take effect on global imports to the US starting tomorrow.
Additionally, higher duties—20% on EU imports and 54% on Chinese goods—are expected to come into force on 9 April.
WTO lawsuit
In a further escalation, China has filed a lawsuit with the World Trade Organization (WTO) against the US tariffs, reports BBC.
A spokesperson from China's Ministry of Commerce stated, "The US-imposed tariff seriously violates WTO rules, damages the legitimate rights and interests of WTO members, and undermines the rules-based multilateral trading system and the international economic and trade order."
"It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this," the spokesperson added.
