China Strikes Back At Trump's Tariffs With Retaliatory Duties, US Company Sanctions, And WTO Showdown

China has responded forcefully to President Donald Trump’s recent tariff increases, implementing reciprocal tariffs on selected American goods, sanctioning U.S. companies, and announcing plans to file a complaint with the World Trade Organization.

What Happened: Beijing’s actions, timed to coincide with the U.S. doubling of universal tariffs on Chinese goods, include duties of 15% on U.S. poultry and agricultural products such as wheat, corn, and cotton, reported South China Morning Post. Tariffs of 10% will be applied to imports of soybeans, pork, beef, and various food products.

“The unilateral tariff measures launched by the United States seriously violate the rules of the WTO and undermine the basis for bilateral economic and trade cooperation,” said a Chinese Ministry of Commerce spokesperson in an official statement.

Beyond tariffs, the Ministry of Commerce added 15 U.S. firms to China’s export control list, requiring special approval for them to receive exports of “dual-use” items. Another ten American companies were placed on Beijing’s “unreliable entity list,” effectively banning them from trading with China or making new investments in the country.

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Why It Matters: The escalation follows Trump’s announcement last week to double tariffs on Chinese imports, augmenting the 10% duties in effect since February. These moves are widely viewed as the opening shots of a new trade war, with Trump signaling on his Truth Social platform that more tariffs could be coming on Apr. 2.

Economists note that while China’s response is significant, it remains measured. “Today’s list covers agricultural goods such as soybeans that are important for trade between the two countries,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management. “But China retaliated on a small share of U.S. exports. I think China is still trying not to escalate the trade war.”

Earlier in February, China had already imposed 15% tariffs on coal and liquefied natural gas and 10% on crude oil, agricultural machinery, and high-displacement vehicles, affecting major U.S. exporters like Exxon Mobil Corp. XOM, Chevron Corp. CVX, and ConocoPhillips COP.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.