China Responds to U.S. Tariffs with Countermeasures and Firm Stance

China will implement increased tariffs on all goods imported from the United States, raising them to 84 percent, effective Thursday morning. In response to U.S. tariff increases, China has also added 18 U.S. entities to its export control and unreliable entity lists.

These countermeasures are seen as a clear signal that China, the world's second-largest economy, is prepared to defend its interests and the multilateral trading system. The Ministry of Culture and Tourism and the Ministry of Education have issued separate risk alerts to Chinese tourists and students planning to visit the U.S.

Beijing's actions follow Washington's decision to increase tariffs on Chinese goods to 84 percent, bringing the total additional tariffs imposed by the current administration to 104 percent. China's Cabinet stated that the U.S.'s decision to increase tariffs is a "mistake upon a mistake." The commission further stated that the U.S. tariff hikes infringe on China's rights, damage the trading system, and destabilize the global economy, representing "unilateralism, protectionism and economic coercion."

The Ministry of Commerce announced the addition of 12 U.S. entities to China's export control list, effectively banning the export of dual-use items from China to these entities. Additionally, six more U.S. companies have been added to China's unreliable entity list, prohibiting them from trading or investing in the country. China has also filed a complaint with the World Trade Organization regarding the latest U.S. tariff hikes.

Analysts suggest that China's strong countermeasures demonstrate that Washington's expectations of China yielding to pressure were incorrect. It is believed that China's firm stance will eventually lead the U.S. back to the negotiation table, but on China's terms.

China's actions reflect its opposition to U.S. dominance and its commitment to a fair, rules-based global trading system. This provides a model for other countries to defend their interests through multilateralism.

Experts suggest that the U.S. tariff policy may encourage other countries to strengthen regional economic cooperation, potentially leading to the establishment of free trade zones and enhanced trade agreements. Chinese companies are advised to mitigate risks by adjusting trade partners, managing order cycles, reassessing supply chain dependencies, and preparing for future supply security and pricing mechanisms.