China slaps extra 34% tariffs on US imports as Trump vows his 'policies will never change'

LAST UPDATE | 15 hrs ago

THE CHINESE GOVERNMENT has said it will slap 34% tariffs on all imports of US goods from 10 April, the most serious escalation in a global trade war sparked by Donald Trump’s “Liberation Day” tariff announcement. 

Trump imposed 54% tariffs on China on Wednesday, which include previous duties already in place, making it one of the hardest-hit countries by the levies.

China today became the first major nation to unveil retaliatory measures.

It has also imposed export controls on seven rare earth elements, its commerce ministry said, including gadolinium – commonly used in MRIs – and yttrium, which is used in consumer electronics.

China will also file a lawsuit with the World Trade Organisation under its dispute settlement mechanism over the sweeping tariffs announced by the US President.

But amid market turmoil, Trump insisted his “policies will never change” and he urged the US Federal Reserve to cut interest rates.

Stocks slump

Wall Street stocks dropped sharply in morning trading, with the blue-chip Dow falling below 39,000 points briefly for the first time since August.

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The S&P 500 also briefly exceeded its Thursday loss – its largest drop since the Covid pandemic in 2020.

European markets also ended the day sharply lower, with Frankfurt and London sinking nearly 5%.

Stock markets in Asia also continued to fall overnight. Japan’s benchmark Nikkei 225 has fallen by another 3.5% and Singapore’s Straits Times Index was almost 3% lower.

On his way to one of his golf clubs in Florida, the US President said: “The markets are going to boom, the stock is going to boom, the country is going to boom.”

Meanwhile, the chair of the US Federal Reserve is due to speak publicly today.

Ahead of this, Trump posted on his Truth Social account that “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates.”

Elsewhere, the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva urged Trump to seek a resolution to the tariffs, warning that they pose “a significant risk to the global outlook at a time of sluggish growth”.

“It is important to avoid steps that could further harm the world economy,” the chief of the global lender said.

“We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

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Negotiation

Speaking to reporters last night, Trump celebrated the “trillions” of dollars in investment that is set to arrive in the US from companies seeking to avoid the painful tariffs.

“The rest of the world wants to see is there any way they can make a deal,” he said, later adding that he would be open to negotiate with other countries depending on what they offer in return.

Trump’s openness to negotiations will be welcomed by European leaders, who are seeking to launch talks with the US before issuing any EU countermeasures. Trade Commissioner Maros Sefcovic is due to start discussions with Washington today.

Speaking last night, the EU’s foreign affairs commissioner Kaja Kallas urged the US to negotiate with Europe, adding: “There are no winners in trade wars. All these tariffs will raise prices for the consumers who in the end get to pay for it.”

There are heightened concerns over the EU’s response in Ireland due to the implications it might have of the lucrative pharmaceutical or technology sectors here.

Trump told reporters last night that the US are currently “looking at pharma”.

The Irish government had backed calls for the US to engage in talks, urging the EU for a ‘measured’ response.

With reporting from Jane Moore

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