Tensions rise: US and China face off in deepening trade war, with new tariffs and export bans impacting global markets.
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Tensions rise again as Beijing targets US goods, companies and key materials in latest trade retaliation.
Just days after Donald Trump announced a fresh wave of tariffs on Chinese goods, China has returned the favour with a 34 per cent tariff on all US imports, sweeping export restrictions on rare-earth elements, and a growing blacklist of American firms barred from doing business in the country.
The new measures, set to kick in from April 10, signal a tougher stance from China in a trade dispute that’s stretching well beyond simple customs duties.
China restricts rare-earth exports in warning to US
China is locking down exports of several rare-earth elements — the kinds used in everything from smartphones and electric cars to fighter jets. Materials like samarium, gadolinium, dysprosium and lutetium will no longer be freely exported to the US from April 4.
The Commerce Ministry said the move is about national security, but it also comes across as a sharp warning. China has a near-monopoly on many of these elements, and pulling back access could hit the US where it hurts — tech, defence and innovation.
China targets US agriculture and defence firms
China isn’t stopping at rare earths. American grain and poultry exports are taking a hit too, with Chinese customs suddenly suspending imports of sorghum, poultry and bonemeal from several US firms.
At the same time, 16 American companies have been slapped with new restrictions, meaning they can’t receive exports from China that could be used for both civilian and military purposes.
Among them are Skydio Inc. and BRINC Drones, which Beijing accuses of selling arms to Taiwan — a red line for China. Eleven more firms have been added to what’s known as the ‘unreliable entities’ list, which allows the government to ban trade and investment with them altogether.
China launches probe into US medical tech imports
The Chinese government has also opened an anti-dumping investigation into CT medical imaging tubes coming from the US and India. Officials say the imports may be undercutting Chinese manufacturers, and they’re now looking into wider competitiveness issues in the medical device sector. It’s a move that suggests China is widening the scope of its response — from agriculture and high-tech, now into healthcare and medical equipment.
With each side raising the stakes, businesses on both continents are now bracing for impact. Whether this latest round of tit-for-tat measures will cool off or spiral further remains to be seen — but one thing’s clear: neither Washington nor Beijing is backing down.
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