China hits back with 34% tariffs, Canada imposes levy on US cars – The Tribune-OxBig News Network

China on Friday slapped a 34 per cent additional tariff on imports from the US in a tit-for-tat response to President Donald Trump’s move to impose a similar levy on Chinese goods. Beijing also announced export controls on certain rare earth metals, aiming to hit American defence, computer, and smartphone industries.

Canada too announced a 25 per cent tariff on all US vehicle imports that did not comply with the free trade agreement. The revenue generated from these tariffs would be directed toward supporting the country’s auto workers and the industry.

Taiwan, another nation hit by US tariffs, said it would offer $2.67 billion worth of financial help to companies and industries to deal with the impact. Taiwan faces a 32% duty on its products.

Criticising Beijing’s move, Trump in a social media post said: “China played it wrong, they panicked — the one things they cannot afford to do.” “My policies will never change. This is a great time to get rich,” he added.

China’s Customs Tariff Commission of the State Council said their tariffs on all products imported from the US would be imposed from April 10. Trump announced 34 per cent tariffs on Chinese imports on Wednesday, unveiling them as part of a sweeping “Liberation Day” package aimed at reshaping American trade policy.

Beijing reacted by filing a lawsuit with the World Trade Organisation against the US’ “reciprocal tariffs”. “By imposing the so-called ‘reciprocal tariffs’, the US gravely violated WTO rules, seriously undermined the legitimate rights and interests of WTO members, and seriously damaged the rules-based multilateral trading system and the international economic and trade order,” a spokesperson for the Commerce Ministry said.

The new tariffs on Chinese imports reflect a 10 per cent universal baseline plus 24 per cent specific to the country. The 10 per cent will come into effect on April 5 while the higher reciprocal tariffs will take effect on April 9.

In a statement, the commerce ministry here said China had also decided to ban the export of dual-use items to 16 US entities. These US entities engaged in activities that might endanger China’s national security and interests, it said.

In addition, the customs authority suspended six US firms’ qualifications for exporting to China. Beijing also launched an anti-dumping probe into imports of medical CT tubes from the US and India, the ministry said.

Beijing announced immediate export control measures on certain rare earth-related items over which it had a near monopoly. China’s Ministry of Commerce and General Administration of Customs said export control measures on certain items related to seven types of medium and heavy rare earths.

The measures, effective immediately, aimed to better safeguard national security and interests and fulfil non-proliferation and other international obligations, the spokesperson said. These materials had both military and civil uses, and imposing export controls on these was a common international practice, the spokesperson said.

Beijing dominates the global rare earth minerals industry, producing a significant portion of the world’s rare earth ores and processing nearly all of them, giving it a near-monopoly on the refined supply.

It has over 30 per cent of the world’s share of rare earth mineral resources —essential for the manufacture of smartphone chips, LCD screens and more — but it has been meeting over 70 per cent of the world’s need for it, according to official media accounts here.

The tariffs brought the total levies on China to 54 per cent, close to the 60 per cent Trump threatened during his poll campaign. With the inclusion of tariffs imposed during Trump’s first term, the overall tariffs on Chinese goods amounted to 79 per cent.

Levy on India now 26%

The US has revised downwards the tariffs on Indian exports from 27% to 26%, according to a White House document. These duties will come into force from April 9. US President Donald Trump had indicated that they would charge India a discounted reciprocal tariff of 26%. Earlier, the White House documents showed a 27% levy.