China Vows Countermeasures Against US Tariffs, Citing 70% Effective Rate

China's Reaction to US Tariffs

• 🇨🇳 China's Ministry of Commerce has urged the US to "immediately cancel our tariffs" in response to new measures.
• 📈 The effective tariff rate for China is now approximately 70%.

Breakdown of New Tariffs

• 🇺🇸 President Trump initially imposed two rounds of 10% tariffs on China to pressure Beijing on Fentanyl.
• 📊 A new 34% "reciprocal tariff" includes a 10% universal baseline and an additional 24% specific to China, with the first part taking effect this Saturday and the latter on April 9th.
• ⚖️ These new tariffs are in addition to previous duties ranging from 10% to 25% imposed during Trump's first term.

Trade Loopholes and Retaliation

• 💻 President Trump also announced the closure of a trade loophole that allowed Chinese e-retailers like Shein and Temu to ship items duty-free.
• 🛠️ China has stated it will take countermeasures, likely including counter tariffs and other retaliatory measures.
• ⛏️ Potential retaliation could involve tighter controls on critical minerals and punishing individual American companies.

Economic Impact and Currency Devaluation

• 🛒 Beijing might pressure companies like Walmart to push tariff costs onto US customers by aiding Chinese suppliers.
• 💰 A significant discussion point is whether China will devalue its currency to help exporters, though fully offsetting a 70% tariff through this method is uncertain.
• 📉 One analyst believes this situation could impact China's GDP growth by 2.4% this year.