China Imposes 34% Tariff on U.S. Imports, Escalating Trade Tensions

By / / Crypto News, Daily News
China Imposes 34% Tariff on U.S. Imports, Escalating Trade Tensions
Table Of Contents
  1. Why the Sudden Move by China?
  2. China Responds with More Than Just Tariffs
  3. US Businesses Under Fire in China
  4. US Closes Import Loophole
  5. Global Trade Continues, But Friction Grows
  6. Crypto Gains Momentum Amid Trade Turmoil

Beijing, April 2025 – In a bold retaliatory move, China has officially announced a 34% tariff on all goods imported from the United States, effective April 10. The decision comes shortly after former US President Donald Trump raised tariffs on Chinese imports, further intensifying a long-standing economic standoff between the two global superpowers.

Why the Sudden Move by China?

Earlier this week, the US increased tariffs on Chinese imports by an additional 34%, adding to a previous 20% levy, bringing the total tariff burden to a staggering 54%. Trump justified the increase as a response to what he called “unfair trade practices” and “currency manipulation” by China and other trading partners. According to him, some countries impose tariffs as high as 67% when all non-tariff barriers are considered.

China Responds with More Than Just Tariffs

In response, China’s State Council Tariff Commission described the US actions as “unilateral bullying” and said the new tariffs are intended to defend national interests and restore fair trade practices. But tariffs weren’t the only move.

China is also tightening its grip on critical exports like rare-earth elements—including dysprosium, terbium, and lutetium—which are essential in manufacturing smartphones, electric vehicles, and military technologies. These stricter export regulations will take effect from April 4, and are said to be rooted in both economic strategy and national security.

US Businesses Under Fire in China

In a sharp blow to American commerce, 16 US companies have been added to China’s export control list, and 11 more have been designated as “unreliable entities.” These businesses could now face serious hurdles, from restricted market access to limited partnerships within China.

Despite the sweeping tariffs, a temporary exemption was granted: goods already en route to China before April 10 will not be subject to the new 34% tariff. This move gives some breathing room to companies with shipments already in motion.

US Closes Import Loophole

Meanwhile, President Trump signed a new executive order to shut down the “de minimis” loophole, a rule that previously allowed small parcels from China and Hong Kong to enter the US without duty fees. The policy change is expected to hit e-commerce platforms and small importers the hardest—especially those dependent on low-cost Chinese goods.

Global Trade Continues, But Friction Grows

Despite rising tariffs and political clashes, trade between the two countries remains active. China reportedly purchased $164 billion worth of US goods in 2024, a slight increase compared to 2017 levels—showing that, even amidst political strain, economic interdependence remains strong.

Crypto Gains Momentum Amid Trade Turmoil

As traditional markets become more volatile, investors are increasingly turning to cryptocurrencies like Bitcoin as a financial safe haven. Trade barriers and increased costs are also driving businesses to explore blockchain-based payment systems, which offer faster, decentralized, and lower-cost international transactions.

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