Beijing, [Date]: A day after former US President Donald Trump issued a fresh tariff order, China has retaliated with a 34% tariff on all US products and has reportedly blocked 16 American entities from operating in the country.
The Chinese government announced the move as a countermeasure to what it called “unfair trade policies” by the US. The new tariffs are expected to impact key American industries, including technology, agriculture, and automotive sectors.
In a statement, China’s Ministry of Commerce said, “The US has repeatedly escalated trade tensions, and we will take necessary steps to protect our national interests.” The restrictions on American entities could affect businesses dealing in semiconductors, AI, and financial services.
This latest trade clash between the world’s two largest economies raises concerns about a potential trade war escalation, with global markets reacting cautiously. Experts believe this tit-for-tat strategy could disrupt supply chains and increase economic uncertainty.
Further negotiations between the two countries are now being closely watched, as businesses and policymakers brace for the impact of these new trade barriers.