China declares a trade war on the US and announces the imposition of more tariffs

On Friday, China announced that it will impose reciprocal tariffs of 34% on all imports from the United States starting April 10, in response to a series of measures taken by U.S. President Donald Trump.

This measure is a retaliation after the implementation of a 34% tariff on all Chinese products imported to the United States, announced on Wednesday, which has intensified fears related to a trade war between the world's two largest economies.

China described these tariffs as a unilateral and "bullying" practice, which violated international trade rules and harmed the country's legitimate rights. However, the Asian regime already had a staggering 67% rate on U.S. products imported to China.

The additional tariffs announced by Trump, added to those he had previously imposed, mean that Chinese products imported to the United States will be subject to tariffs of more than 54%, which has caused some fear in financial markets.

In response, China adopted broader measures than on previous occasions. Apart from the tariffs, Beijing added 11 U.S. companies to its "unreliable entities list", including drone manufacturers, and established export controls on 16 U.S. companies, prohibiting the export of dual-use Chinese products, such as advanced technological components.

China also initiated anti-dumping investigations on medical X-ray tubes from the United States and India, and applied export controls on seven rare minerals used in the manufacture of advanced technology, such as samarium and gadolinium. It is worth noting that China is the largest actor related to dumping in international trade.

Markets reacted negatively to these developments. On Friday, Dow futures fell 1,000 points (2.3%) and other major indices, such as the S&P 500 and Nasdaq, also experienced significant declines, reflecting concern about the impact of an escalation in trade tensions. On Thursday, the Dow had already fallen more than 1,600 points, marking its worst performance in five years.

Companies with supply chains in China face new challenges, not only due to U.S. tariffs but also because of tariffs imposed on other Asian countries due to Trump's trade policies.

Additionally, China faces a major internal economic slowdown, which has led the government to implement measures to stimulate domestic consumption while preparing for a greater impact from the trade conflict.

Larry Hu, chief economist at Macquarie Group, estimated that the additional tariffs could reduce China's economic growth by up to 2.5 percentage points in 2025.

Despite the tension, Hu suggested that China would try to redirect its exports to other countries in Asia and Latin America, as happened during the first Trump administration, when Chinese companies tried to mitigate the impact of the tariffs.

In addition to these tariffs and restrictions, China included more U.S. companies in sanction and export control lists. Among them are companies like Skydio Inc. and BRINC Drones, which have been singled out for their arms sales to Taiwan, a territory that China claims as part of its sovereignty.

From the Trump administration's perspective, the implementation of reciprocal tariffs aims to correct unfair trade practices and protect the U.S. industry.

Trump has reiterated his stance that these measures will strengthen the U.S. economy and create jobs by reversing conditions that, according to him, have unfairly favored foreign countries to the detriment of the United States.

Despite the economic risks, Trump has pointed out that the tariffs will generate a positive long-term change for the U.S. economy, boosting manufacturing and domestic production.