China fired a major salvo in its trade war with the United States on Friday, April 4, 2025, announcing a 35% tariff on all American imports starting April 10, a direct retaliation to President Donald Trump’s sweeping duties unveiled this week. The news is rippling globally—China’s Finance Ministry confirmed the move hours ago, vowing to “safeguard its rights” after Trump’s “Liberation Day” tariffs hit on Wednesday.
China’s Ministry of Commerce dropped the announcement early Friday, calling Trump’s tariffs “bullying” and a “miscalculation.” The 35% duty blankets every U.S. good—from soybeans to iPhones—stacking on top of earlier levies like the 15% on farm goods from March 4 and 10% on energy from February 10. It’s a step up from the 34% figure floated Thursday, signaling Beijing’s intent to match Trump’s latest 34% reciprocal tariffs—added to the 20% already on Chinese goods since March—bringing the total U.S. tariff burden on China to 54%. Foreign Ministry spokesman Lin Jian said, “If the U.S. wants a tariff war, we’ll fight to the end,” echoing defiance seen at March’s National People’s Congress.
China’s State Council Tariff Commission laid out the specifics: no exemptions, no carve-outs, just a flat 35% wall on everything. Goods already in transit before April 10 get a grace period until May 12, but after that, the tariffs hit in full. The announcement triggered immediate reaction across markets and social media, as analysts and commentators flagged the move as a major escalation in what’s now a full-blown trade war.
The tariff hits everything American crossing into China’s $18 trillion economy—$155 billion in U.S. exports from 2023 now face a sudden cost spike. Big targets include agriculture—soybeans, pork, wheat—already hit with earlier 15% duties, now facing the full 35%. U.S. energy exports like crude oil, coal, and liquefied natural gas are also in the crosshairs, adding to the 15% levies imposed in February. The move extends into manufacturing and tech—Boeing aircraft, General Motors vehicles, and Apple devices all now fall under the tariff scope, marking a shift from China’s prior restraint on consumer tech.
But tariffs aren’t the only weapons. China has expanded its export bans on rare minerals like tungsten and molybdenum, critical to U.S. tech production. These bans began in February and widened in March. On top of that, Beijing blacklisted 15 U.S. firms—including drone manufacturer Skydio—blocking their access to dual-use tech. Its February 4 antitrust probe into Google is also heating up, signaling Beijing’s readiness to target U.S. firms beyond tariffs. As one analyst put it, “This is China saying, ‘We’ve got more than tariffs up our sleeve.’”
Markets didn’t take the news well. By Friday morning, the S&P 500 was down another 0.8%, extending losses from Trump’s tariff announcement earlier in the week. Global markets mirrored the downturn—China’s Hang Seng dropped 0.3%, Japan’s Nikkei fell 1.2%, and the dollar lost 0.75% against major currencies. Investors fled to safety, with gold surging to $2,710 per ounce, its highest on record. Analysts warned that panic is spreading, and China’s move adds to fears of a recession triggered by prolonged global economic friction.
For U.S. exporters, the blow is brutal. Soybean farmers, already reeling from years of trade friction, face near-total loss of access to China, a market once worth $43 billion but down to $29 billion last year. U.S. coal and LNG producers, who shipped $19 billion to China in 2023, are watching contracts crumble as China pivots to Australian and Qatari suppliers. “This could wipe out our China market,” one Iowa farmer told reporters, echoing fears across the Midwest.
American consumers are also bracing for higher costs. Trump’s 54% tariffs on Chinese imports—everything from laptops and clothing to toys and smartphones—are driving up prices. An iPhone could jump from $1,300 to $1,500, and Walmart shoppers may see clothes costing $5 more. New cars could cost $3,000 more due to Canada and Mexico’s 25% retaliation announced earlier this week. Tax Foundation analysts estimate Trump’s tariffs already cost households $2,100 per year, and China’s 35% retaliation could raise that even higher as U.S. manufacturers lose export revenue and raise domestic prices.
China’s population will feel it too, with American pork, apples, and cars getting more expensive—but Beijing’s betting its domestic market and ongoing stimulus efforts can absorb the shock. The government is loosening monetary policy and increasing infrastructure spending to maintain 5% growth, using fiscal levers that weren’t fully tapped during March’s National People’s Congress.
Trump’s original tariffs—25% on auto imports, 34% reciprocal on countries taxing U.S. exports, 25% on Venezuelan oil buyers—lit the fuse. The administration justifies it as part of its “America First” agenda, tying the moves to fentanyl trafficking and a ballooning trade deficit. China sees it differently, accusing Washington of hegemony and overreach. The 35% tariff is Beijing’s clearest signal yet that it won’t roll over.
This round of escalation threatens global stability. Canada and Mexico, already imposing 25% retaliatory tariffs on U.S. goods, are watching closely—China’s bold move might inspire deeper pushback from other allies. The European Union is preparing $28 billion in tariffs for mid-April, targeting iconic U.S. exports like Harley-Davidsons and Kentucky bourbon. Japan and South Korea, both facing Trump’s auto import duties, are reconsidering their U.S. alignment. Analysts warn that Washington’s unpredictability could push East Asian nations closer to China.
South Korea adds to the instability. President Yoon’s impeachment Friday over a martial law stunt leaves the U.S. ally without steady leadership at a critical time. Meanwhile, North Korea’s propaganda machine is gloating, branding the economic unrest a sign of “capitalist collapse.” The International Monetary Fund has weighed in, predicting a potential 0.5% drop in global GDP by 2026 if the trade war keeps escalating.
China’s 35% duties kick in April 10, giving U.S. companies just days to reroute supply chains or swallow the cost. Trump has floated going higher—possibly 60% on China if things don’t shift, as hinted during campaign events. Commerce Secretary Howard Lutnick said Wednesday that limited tariff relief for Canada and Mexico is possible if fentanyl trafficking declines, but China remains firmly in the administration’s crosshairs.
This is no longer a policy dispute—it’s a full-scale economic standoff. U.S. households face steeper bills, Chinese consumers lose access to cheaper imports, and global industries brace for impact. Trump calls his tariffs “beautiful.” Beijing calls them “hegemonic.”