The economic rivalry between China and the United States has reached a new peak, with Beijing imposing a series of retaliatory measures against Washington’s latest trade restrictions. As the U.S. tightens its stance on Chinese imports and imposes 34% tariffs on Chinese goods, China has responded with increased tariffs, import bans, and corporate blacklists. This ongoing battle is not just a bilateral dispute—it has far-reaching implications for global trade, supply chains, and economic stability.
China’s response highlights its strategic positioning in the global economy, leveraging both regulatory actions and market influence. The latest tariffs and restrictions indicate that Beijing is willing to escalate economic pressure while safeguarding its domestic interests. With both countries doubling down on trade barriers, analysts predict further disruptions in international commerce and potential economic slowdowns. Will this tit-for-tat escalation push the two nations toward a broader economic confrontation, or will diplomatic negotiations intervene before the situation worsens? The coming months will be crucial in determining the trajectory of this intensifying trade conflict.
China’s new tariffs on U.S. goods
China has announced an additional 34% tariff on all U.S.-origin goods, effective April 10, 2025. This move is a direct response to the U.S. government’s new reciprocal tariffs on Chinese imports. According to China’s Customs Tariff Commission, the U.S. action violates international trade rules and damages China’s economic interests.
The new tariff policy applies to all affected goods based on current applicable rates. However, shipments departing before April 10 and arriving in China by May 13 will be exempt. The commission has clarified that existing bonded and tax reduction policies remain unchanged.
U.S. officials argue that the tariffs are necessary to protect domestic industries and address trade imbalances. China, however, views them as economic coercion and unilateral aggression.
Import ban on U.S. agricultural and poultry products
China’s General Administration of Customs has suspended import qualifications for six U.S. enterprises due to concerns over product safety. The ban affects one U.S. company exporting sorghum and five companies involved in poultry-related products.
Recent inspections detected excessive levels of zearalenone and mold in U.S. sorghum, while some poultry meat and bone meal tested positive for Salmonella. In addition, Chinese authorities found traces of furazolidone, a prohibited drug, in U.S. poultry imports.
The affected companies include C&D (USA) INC for sorghum exports, while American Proteins, Inc., Mountaire Farms of Delaware, Inc., and DARLING INGREDIENTS INC. face restrictions on poultry meat and bone meal. Coastal Processing, LLC joins Mountaire Farms of Delaware, Inc. on the list of poultry product suppliers banned from the Chinese market.
Chinese regulators emphasize that these measures align with both domestic food safety laws and international trade regulations under the World Trade Organization (WTO). The decision underscores Beijing’s intent to safeguard public health while exerting economic pressure on U.S. agribusiness.
Business blacklist expands over military ties with Taiwan
China’s Ministry of Commerce has added 11 U.S. companies to its unreliable entity list for allegedly engaging in military technology cooperation with Taiwan. Among the targeted firms are drone manufacturers Skydio and BRINC Drones.
According to Beijing, these companies have ignored repeated warnings and violated China’s sovereignty by supplying military-related technologies to Taiwan. As a consequence, they are now prohibited from engaging in trade or investment activities within China.
The blacklist restricts these firms from conducting import and export operations and prevents them from making new investments. While China’s Ministry of Commerce emphasizes that the measure is limited to entities harming national security, the move further deepens tensions between the two economic giants.
Washington has yet to respond directly to these sanctions, but the U.S. has previously accused China of using economic tools to exert political pressure. This latest development signals Beijing’s determination to counter what it perceives as external interference in its territorial affairs.