China’s latest tariffs come as a direct response to Trump’s trade policies, which have included a 34% tariff on Chinese imports since early 2025, according to the Tax Foundation. The U.S. measures, part of Trump’s broader strategy to address trade imbalances, have also targeted Canada, Mexico, and the EU, with rates ranging from 12% to 25%. China’s retaliation follows its earlier March 2025 levies of 15% on U.S. agricultural products like soybeans and pork, severely impacting American farmers.
But while President Trump’s tariffs exempted some large categories of imports, like semiconductors and pharmaceuticals, the Chinese tariffs have no exemptions.
Global Markets and U.S. Farmers Feel the Heat
The trade war has sent shockwaves through global markets, with the US stocks particularly S&P 500 plummeting nearly 5% on April 3, its worst drop since June 2020, per The New York Times.
U.S. farmers, already strained by China’s prior tariffs, face further challenges as export markets shrink. Japan has also voiced regret over Trump’s policies, signaling broader international discontent.
U.S. Treasury Secretary’s Potential Retaliatory Measures
In response to China’s latest tariffs, U.S. Treasury Secretary is reportedly considering several retaliatory measures. These could include increasing tariffs on Chinese goods beyond the current 34%, targeting strategic sectors like technology and manufacturing. Additionally, the U.S. might impose sanctions on Chinese firms or push for stricter export controls on critical technologies, aiming to pressure Beijing into negotiations. Yellen has emphasized the need to protect American industries while avoiding further escalation that could harm the U.S. economy.
