Beijing: Triggering a full-blown trade war, China will impose additional 34 per cent tariffs on all products imported from the United States starting from April 10, the Customs Tariff Commission of the State Council announced on Friday.
The announcement follows the U.S. decision to impose “reciprocal tariffs” on Chinese exports to the United States, a move that the commission said does not conform to international trade rules, seriously undermines China’s legitimate rights and interests, and represents a typical act of unilateral bullying, reports Xinhua news agency.
China’s Ministry of Commerce said it was adding 11 American companies to its list of “unreliable entities,” which bars them from doing business in China or with Chinese companies.
The ministry also imposed stringent limits on exports of certain rare earth elements, including gadolinium and yttrium, which are mined almost exclusively in China and are used in everything from electric cars to smart bombs.
US President Donald Trump has announced 54 per cent reciprocal tariffs on China, which include previous duties already in place. That makes China one of the hardest-hit countries on the tariff list.
Global investment bank JP Morgan has said it now sees a 60 per cent chance of the global economy entering recession by 2025 end, up from 40 per cent previously.
According to analysts, the reciprocal tariffs imposed by the US will undoubtedly hit all countries but Indian exporters may emerge stronger as rivals, mainly, China faces steeper duties as high as 65 per cent and even beyond.
For India, the additional 27 per cent tariff places it in the lower half of targeted countries, creating opportunities beyond traditional export sectors like engineering goods, electronics, gems and jewellery, textiles, and apparel.
The tariffs could also shift competitiveness in India’s favour in sectors where other regional exporters are more severely impacted.
To maximise this advantage, India must not only negotiate with the US to maintain market access but also collaborate with FTA partners in Asia to restructure supply chains and seize new opportunities,” according to experts.
(IANS)
