Written by Cláudio Afonso | LinkedIn | X
China said it will impose a 34% tariff on U.S. imports, mirroring Washington’s move to levy an equivalent duty on Chinese goods starting April 10, in a sharp escalation of trade tensions between the world’s two largest economies.
In a statement Friday morning, China’s Ministry of Commerce condemned the U.S. action as “a typical act of unilateral bullying,” saying it undermines progress made through years of multilateral trade talks.
The ministry called on the U.S. Administration to immediately withdraw the tariffs and resolve disputes through “fair and equal dialogue.”
Shares of Tesla, which has in China its second biggest market and its most efficient GigaFactory, plunged over 5% immediately after the report. Chinese EV makers Nio, XPeng, Zeekr and Li Auto saw their shares fall between 3 and 6% on early Friday.
Wall Street endured its sharpest single-day selloff since the early days of the COVID-19 crisis on Thursday. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all tumbled between 4% and 6%.
Commenting on the stock market reaction, Trump said on Thursday: “Well, I mean…it is to be expected, This is a patient that was very sick. We inherited a terrible economy, as you know — with a lot of problems.”
Separately, the Ministry of Commerce added 11 U.S. companies to its “unreliable entities list,” barring them from operating in China or partnering with Chinese firms. The move was accompanied by export restrictions on select rare earth elements, materials critical to industries ranging from electric vehicles to military technology.
China’s customs authority also announced a halt to poultry imports from certain U.S. agricultural suppliers.
Tariffs: EU x China
As reported earlier this Friday, the European Union and China have agreed to restart discussions over proposed price commitments related to Brussels’ anti-subsidy investigation into Chinese electric vehicle imports.
In addition to early entrants like BYD, Nio, XPeng, or Zeekr, which began selling fully electric models in Europe in recent years, a new wave of Chinese automakers is expanding into the region. These include Changan Group with its Avatr and Deepal brands, GAC’s Aion brand, and Chery Auto.
China’s Ministry of Commerce said Thursday that both sides have committed to promptly resuming negotiations aimed at fostering a more favorable environment for investment and industrial cooperation between Chinese and European firms.
