Financial News

China Imposes 34% Retaliatory Tariff on All Goods Imported from the US

China’s Finance Ministry says Trump’s recent tariff imposition is “inconsistent” with international trade rules, undermining Chinese interests and endangering the global economic development and supply chain stability.

China is firing back on President Trump’s recent imposition of 10%-15% tariffs on some US agriculture goods in March and 10%-15% tariffs on some energy and farming machinery in February.

China’s Finance Ministry announced Friday it will impose a 34% tariff on all goods imported from the US starting Thursday, April 10.

Though a retaliatory action, the country means well.

The ministry said China is admonishing the US to revoke its unilateral tariff measures and resolve trade differences through consultation in an “equal, respectful and mutually beneficial manner.”

The ministry says Trump’s recent tariff imposition – which includes 34% of additional reciprocal levies on China yielding 54% of total US tariffs against the country – is “inconsistent” with international trade rules, undermining Chinese interests and endangering the global economic development and supply chain stability.

China has reportedly added 11 US firms to the “unreliable entities list” that the Beijing administration says violated market rules or contractual commitments. China’s Ministry of Commerce added 16 US entities to its export control list and said it would implement export controls on seven types of rare earth-related items, including samarium, gadolinium and terbium.

NCLA Sues to Stop Trump Administration from Imposing ‘Unauthorized’ Emergency Tariffs

On Thursday, April 3, the New Civil Liberties Alliance filed the first complaint challenging Trump’s “unlawful” attempt to require Americans to pay a heavy tariff on all products they import from China.

Trump imposed the tariff by invoking the International Emergency Economic Powers Act. This statute, however, authorizes specific emergency actions like imposing sanctions or freezing assets to protect the US from foreign threats. The alliance argues it does not authorize the president to impose tariffs.

Representing Simplified, a Pensacola, FL-based company owned by entrepreneur Emily Ley, NCLA is petitioning the US District Court for the Northern District of Florida to declare the China import tariff unlawful, vacate the increase reflected in the US tariff schedule and enjoin this tariff’s implementation and enforcement. The alliance calls the new China tariff “harmful” to Simplified, a company that improves women’s lives by selling premium planners and other home management products. Simplified’s business depends on importing materials from China, and it has already paid substantial tariffs to purchase goods from China that are not available in the US.

The alliance believes the so-called “emergency” tariff will force it to make higher tariff payments, driving up its costs and thus prices for its customers, and reducing its profits.

“By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress’s right to control tariffs and upset the Constitution’s separation of powers,” said Andrew Morris, senior litigation counsel, NCLA.

John Vecchione, senior litigation counsel, NCLA, contends Congress owns the constitutional power to collect taxes, duties, imposts and excises and to regulate commerce with foreign nations.

“The Administration’s actions followed none of these constitutional commands, and the statute it cites does not even use the word ‘tariff’ or ‘tax,’” said Vecchione. “This unlawful ‘impost’ must fall.”

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