China defends herself in the trade conflict triggered by US President Donald Trump. The Ministry of Finance in Beijing announced that an additional custom of 34 percent is now also being charged to all US goods.
These counter -tariffs should come into force on April 10th. In addition, Beijing has put eleven US companies on a black list, which makes it impossible for this impossible to continue trading in China or with Chinese companies. With the countermeasures of China, Trump’s conflict is additionally fueled, and concerns about the global economy are growing.
Trump announced an unprecedented customs package on Wednesday with additional taxes for imports from the rest of the world. Some of the larger trading partners are more affected. 34 percent should be due on Chinese imports to the United States, 20 percent for imports from the EU.
Trump’s huge customs package is actually a declaration of war on trading partners all over the world. Even before the announcement, the United States had occupied 20 percent tariffs from China, whereupon Beijing reacted with its own measures. Now the People’s Republic will make further surcharges of 34 percent, which increases the customs load for products from the Far East to more than 50 percent.
After the United States, China is the second largest economy in the world and, as an export world champion, delivers as many products around the world as no other country. Germany is also heavily dependent on exports and benefits from open markets. The EU Commission also prepared countermeasures.
Financial markets and oil prices on a descent
The financial markets worldwide reacted to the escalation with further price losses. The price slide continued on the German stock market after the customs shock. The leading index Dax expanded its already clear losses and was a good 4 percent lower in the afternoon.
The Dow Jones Industrial dropped by another 2.5 percent in early trade. The previous day, the world’s best -known stock index fell by 4 percent. The most lost stock market has been threatened since October 2020.
Nasdaq 100, dominated by Tech shares, has fallen to the deepest status since August 2024. The prices for crude oil from the North Sea and US raw oil have fallen to the lowest level since 2021.
“Prospects are extremely dark”
According to the Foreign Trade Association BGA, the Chinese answer is clearly escalating. There is a week of waiting time before the tariffs grip. “The belief on the American side, now everyone would buckle and beg after deals, is a misconception,” said general manager Antonin Finkelnburg. “We are now at the beginning of a global conflict of trade that escalates, which will lead to further stages and which falls into a massive crisis.”
Similar to Volker Treier, DIHK Foreign Agency: China’s announcement continues to rotate the escalation spiral-and the export-oriented German economy is in the middle of it. A conflict between the United States and China brakes world trade and particularly stresses Germany as an exporting nation. The German economy would noticeably affect a falling international demand.
Rolf Langhammer from the Kiel Institute for the World Economy also spoke of the beginning of a global escalation spiral, which could lead to a global recession. The EU will also answer relatively quickly. “Trump is more likely to put on these new counter-tariffs China than the Chinese because his chance of reducing the US trade record deficit by increasing US exports to China is now installed,” said Langhammer.
China exports significantly more to the USA
Exports are an important support for the economy of the People’s Republic. In total, China’s exports had recovered in 2024 and made a leap shortly before Donald Trump’s swearing-in as the new US president. The surplus of trade rose to a record high of just under a trillion US dollar.
In 2024, according to government information in Washington, the United States introduced China worth almost $ 439 billion (398 billion euros) – an increase of 2.8 percent for the previous year. In the opposite direction, US goods exports to China were $ 143.5 billion, 2.9 percent less than 2023. The US trade deficit with the People’s Republic was the bottom line to more than $ 295 billion, which corresponded to an increase of $ 5.8 percent. This deficit has been a nuisance for years.
Beijing calls US tariffs “harassment”
The measures taken by China are interpreted by observers as a clear sign that one will not give up in the conflict with the USA. The Chinese government also excluded export controls for rare earths to the USA with immediate effect. Rare earths make smartphones, LEDs, electric motors and wind turbines more powerful. These raw materials are mainly broken down in China. In addition, Beijing announced a lawsuit against the USA at the World Trade Organization (WTO).
Beijing condemns the tariffs as “harassment”, which are not in line with international trade rules and “seriously undermine China’s legitimate rights and interests,” says a statement by the customs commission of the Chinese State Council.
China’s market supervisory authority also announced an investigation against the US group Dupont. The chemistry giant is therefore suspected of having violated Chinese antitrust law. The examination should be a politically motivated decision.
Trump brought customs discount into play
Trump had given the prospect of China in the tariffs and referred to the dispute over the Kurzvideo app TIKTOK. According to a US law, Tikok would have had to be sold by the owner of China by January 19 – or left the network in the USA. But Trump admitted a grace period that runs on April 5.
“We have a situation with Tikkok, in which China will probably say: we will agree with a deal, but will they do something about the tariffs?” Said Trump recently.
