They played it wrong, warns Donald Trump on China's reciprocal tariffs

US President Donald Trump on Friday lashed out at Beijing, declaring that China "played it wrong" after the Asian economic giant responded to new US tariffs by imposing an additional 34 per cent duty on American products.

 

According to China’s finance ministry, these retaliatory tariffs will go into effect on April 10. Trump reiterated his criticism on his social media platform Truth Social: "CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!"

 

China’s countermeasure follows the US' announcement on April 2 of a 34 per cent reciprocal tariff on Chinese goods — a key component of Trump’s “Liberation Day” initiative aimed at rebalancing trade and protecting American industries. 

 

The additional duty is in addition to an earlier 20 per cent tariff on Chinese goods, meaning many Chinese products could face an overall rate of up to 54 per cent.

 

The Trump administration defended the 34 per cent rate by using a formula based on the US trade deficit with China — dividing the deficit by the total value of Chinese imports and then halving the result — to argue that this duty level is “fair” and a necessary reciprocal response to China’s alleged unfair trade practices and intellectual property theft.

 

In a parallel move, China is set to introduce export restrictions on several crucial medium and heavy rare-earth elements - including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium — starting April 4. These elements are vital for high-tech manufacturing and defence applications. 

Beyond the immediate economic repercussions, the 34 per cent tariff marks a significant shift in US trade policy towards aggressive, unilateral measures. While Trump’s approach aims to compel China into more favourable trade negotiations and revive US manufacturing, critics warn that such blunt instruments risk harming both economies by disrupting global supply chains, reducing US exports, and raising costs for American businesses and consumers.

 

 

ALSO READ: China hits back with 34% tariff on US goods after Trump's trade salvo