China Hits Back At Trump Tariffs With 34% Duties On All US Goods

China retaliated against new US tariffs with a slew of measures, including levies on all American imports and export controls on rare earths, escalating the trade fight with President Donald Trump.

“The US action does not abide by international trade rules, severely undermines China’s legitimate and lawful rights and interests, and is typical unilateral bullying,” the Finance Ministry said in a statement announcing the 34% tariffs.

The economic conflict between the two governments has extended to private companies in both countries. Chinese officials have pushed back against Walmart Inc.’s efforts to pressure Chinese suppliers to cut prices to offset Trump’s tariffs. Hong Kong tycoon Li Ka-shing drew Beijing’s ire by agreeing to sell his company’s ports in Panama, a move criticized as an attempt to appease Trump.

Trump justified his new tariffs as a fair way to match the barriers that other countries enact on US firms and goods. His administration has also accused China of erecting non-tariff barriers that disadvantage US exports and companies, complaints that were laid out in an annual report published by the USTR this week.

The latest measures reflect China’s message to the Trump administration that both sides are equal, and Beijing will not simply submit or accept the situation, said Wen-Ti Sung, a non-resident fellow at the Atlantic Council’s Global China Hub.

Still, China is leaving some “off-ramp,” he said. “China’s retaliation seems still proportional and targeted by design, focusing mainly on agricultural goods and defense contractors, both of which are key Trump coalition constituencies.”