China's retaliation for U.S. reciprocal rariffs
Date of publication: April 14th, 2025
On April 2, 2025, the US government announced the imposition of "reciprocal tariffs" on Chinese goods exported to the US, which China views as a violation of international trade rules. In response, the State Council Tariff Commission of China issued Tax Commission Announcement No. 4 of 2025 , imposing additional tariffs of 34% on all US goods starting April 10, 2025.
However, On April 8, 2025, the US government escalated the "reciprocal tariff" on Chinese goods from 34% to 84%. In response, China issued Tax Commission Announcement No. 5 of 2025, adjusting its tariff to 84% effective from April 10, 2025.
Further escalating the situation, on April 10, 2025, the US government increased the "reciprocal tariff" on Chinese goods to 125%. In response, China issued Tax Commission Announcement No. 6 of 2025 dated April 11, 2025, adjusting its tariff measures once again to 125% from 84% effective from April 12, 2025.
Tariffs
1. 125% Additional Tariff:
- A 125% tariff will be imposed on all imported goods originating from the United States, in addition to the current applicable tariff rate.
Chapters with the highest tariff rate range
Chapter | Additional Duty Range |
|---|---|
2 | 125% - 190% |
8 | 135% - 180% |
76 | 125% - 175% |
“The duty rate applicable to the current imported goods originating from the US ranges from 125% to 190%.
2. Bonded, Tax Reduction, and Exemption Policies:
- The current bonded, tax reduction, and exemption policies remain unchanged. The additional tariffs will not be reduced or exempted.
3. Shipping Conditions:
- Goods shipped from the place of departure before 12:01 on April 10, 2025, and imported between 12:01 on April 10, 2025, and 24:00 on May 13, 2025, will not be subject to the additional tariffs.
Export controls
Effective April 4, new restrictions on exports of the following rare earth elements used in the semiconductor, defense, and manufacturing industries: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, as well as their compounds and alloys. Many of these exports currently go to the U.S. and the restrictions could therefore present difficulties for U.S. companies that rely on importing them from China.
Effective April 4, MOFCOM announced the addition of 16 U.S. entities to the Export Control List. Additionally on April 9, the addition of 12 more U.S. entities were added to the List. Export of dual-use items to these entities is prohibited and any existing activities with these companies must be stopped immediately.
Import bans
Effective April 4, prohibiting imports of poultry from two U.S. exporters, poultry bone meal from three U.S. exporters, and sorghum from one U.S. exporter.
Unreliable entity list
Effective April 4, added 11 U.S. entities to its unreliable entity list. Entities on this list are prohibited from engaging in import and export activities related to China as well as making new investments in China. Additionally, effective April 9, 6 more U.S. entities were added to the unreliable entity list.
Antidumping investigation
Effective April 4, MOFCOM initiated an antidumping investigation of certain X-ray tube assemblies and tubes thereof for medical CT devices from the U.S. Subject goods are classified under HS 9022.30.00 in China. U.S. stakeholders have 20 days to register with MOFCOM to participate in this investigation or submit comments.
Conclusion
The escalating reciprocal tariffs between the US and China could significantly strain their trade relationship and disrupt global supply chains. These measures might lead to increased costs for businesses and consumers in both countries. The restrictions on rare earth exports and import bans could further complicate the situation for industries reliant on these materials. Overall, the situation risks escalating into a broader trade conflict with potential global economic repercussions.
Recognizing the importance of these changes for our clients, we have already made them available on ONESOURCE Global Trade Content.
To learn more about how the ONESOURCE Global Trade suite of tools and services can help businesses analyze potential impacts, explore alternative sourcing options, and optimize their trade operations to mitigate risks and capitalize on potential advantages, please contact your Account Manager or Customer Success Manager.