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China takes retaliatory actions against US reciprocal tariffs

Date of Publication: April 7th, 2025
In response to the United States (U.S.) recent actions on April 2, 2025, to implement additional reciprocal tariffs of 34% on Chinese origin goods imported to the U.S., on April 4, 2025, the Ministry of Commerce of the People’s Republic of China (MOFCOM) has taken a series of new actions.

Actions taken

• On April 4, 2025 the Customs Tariff Commission of the State Council announced it would be implementing a 34% tariff on all imported goods originating in the United States in addition to the current applicable tariff rate. This tariff would go into effect on 12:01 AM on April 10, 2025. The current bonded and tax reduction and exemption policies remain unchanged, and the additional tariffs being imposed this time will not be reduced. If the goods have been shipped from the place of departure before 12:01 AM on April 10, 2025, and imported from 12:01 on April 10, 2025, to 24:00 on May 13, 2025, the additional tariffs stipulated will not be applied.
• On April 4, 2025 MOFCOM added 11 US companies, including leading American drone manufacturers Skydio Inc. and BRINC Drones, Inc., to the Unreliable Entity list. The additions to the list include the following entities:
  1. Skydio Inc.
  2. BRINC Drones, Inc.
  3. Red Six Solutions
  4. SYNEXXUS, Inc.
  5. Firestorm Labs, Inc
  6. Kratos Unmanned Aerial Systems, Inc.
  7. HavocAI
  8. Neros Technologies
  9. Domo Tactical Communications
  10. Rapid Flight LLC
  11. Insitu, Inc
These companies, in disregard of strong opposition from China, have undertaken so-called military technology cooperation with Taiwan. As a result, they are prohibited from engaging in import and export activities related to China and barred from making new investments within China.
  • Additionally, MOFCOM has also added 16 US companies, including High Point Aerotechnologies and Universal Logistics Holdings, Inc., to its Export Control list. The additions to the list include the following entities:
  1. High Point Aerotechnologies
  2. Universal Logistics Holdings, Inc.
  3. Source Intelligence, Inc.
  4. Coalition For A Prosperous America
  5. Sierra Nevada Corporation
  6. Edge Autonomy Operations LLC
  7. Cyberlux Corporation
  8. Hudson Technologies Co.
  9. Saronic Technologies, Inc.
  10. Oceaneering International, Inc.
  11. Stick Rudder Enterprises LLC
  12. Cubic Corporation
  13. S3 AeroDefense
  14. TCOM, Limited Partnership
  15. TextOre
  16. ACT1 Federal
The export of dual-use items to these 16 US entities is prohibited, and any ongoing related export activities must be immediately halted, according to the announcement. If export is deemed necessary under special circumstances, the exporter shall apply to the Ministry of Commerce.
  • Finally, on April 4, 2025, MOFCOM and the General Administration of Customs announced additional export controls on medium and heavy rare earth minerals. This action was taken in order to safeguard national security and interests and fulfil international obligations such as non-proliferation. Those items falling within the scope of this order include the following:
  • 1C902.a Samarium metal, samarium-containing alloys and related products
  • 1C902.b Samarium oxide and its mixture
  • 1C902.c Samarium-containing compounds and their mixtures
  • 1C903.a Gadolinium metal, gadolinium-containing alloys and related products
  • 1C903.b Gadolinium oxide and its mixture
  • 1C903.c Gadolinium-containing compounds and their mixtures
  • 1C904.a Terbium metal, terbium-containing alloys and related products
  • 1C904.b Terbium oxide and its mixture
  • 1C904.c Terbium-containing compounds and their mixtures
  • 1C905.a Dysprosium metal, dysprosium-containing alloys and related products
  • 1C905.b Dysprosium oxide and its mixture
  • 1C905.c Dysprosium-containing compounds and their mixtures
  • 1C906.a Lutetium metal, alloys containing lutetium and related products
  • 1C906.b Lutetium oxide and its mixture
  • 1C906.c Lutetium-containing compounds and their mixtures
  • 1C907.a Scandium metal, scandium-containing alloys and related products
  • 1C907.b Scandium oxide and its mixture
  • 1C907.c Scandium-containing compounds and their mixtures
  • 1C908.a Yttrium metal, yttrium-containing alloys and related products
  • 1C908.b Yttrium oxide and its mixture
  • 1C908.c Yttrium-containing compounds and their mixtures
Exporters must apply for permission from the competent department of commerce under the State Council for the export of the above-mentioned items in accordance with the relevant provisions of the Export Control Law.

Conclusion

In the broader context, China’s actions highlight the growing use of export controls as a tool in international diplomacy and economic strategy, particularly in sectors like Artificial Intelligence, Defense, and Surveillance Technologies.
With China’s sanctions becoming more frequent and more stringent, businesses must exercise extreme caution when dealing with any entity potentially affected by these lists, as engaging with such sanctioned firms can lead to substantial legal, financial, and reputational risks.
These changes have been updated in ONESOURCE Global Trade Content.
For more information on how ONESOURCE Global Trade solutions can assist you in managing restricted party screening, please contact your Account Manager or Customer Success Manager.