China’s Tariff and Non-Tariff Retaliation Against the US: A Detailed Overview
On March 4, 2025, China announced additional tariffs as retaliation against US tariffs imposed by President Trump. Effective March 10, these tariffs include a 15% duty on certain agricultural imports and a 10% duty on others. Additionally, China implemented non-tariff measures affecting 15 US defense entities and suspended imports from specific US companies, showcasing deepening trade tensions. An anticircumvention investigation was also initiated against US exporters.
On March 4, 2025, China announced new tariffs on specific US agricultural imports set to take effect on March 10, 2025, as retaliation against increased tariffs imposed by President Trump. The new measures include a 15% additional duty on imports such as chicken, wheat, corn, and cotton, and a 10% additional duty on imports including sorghum, soybeans, and pork, among other products. These tariffs are part of an ongoing trade dispute following Trump’s implementation of a 20% tariff on all imports from China under the International Emergency Economic Powers Act (IEEPA).
The specifics of China’s tariff actions detailed in Notification No. 2/2025 outline the categories of affected goods. Tariffs will apply to 29 tariff lines for certain products and 711 tariff lines for others, with a clear indication that no exemptions or reductions will apply to these tariffs. Items in transit before March 10 will be exempt from the additional tariffs until April 12, 2025. The Chinese Ministry of Commerce (MOFCOM) also announced that these measures would be included in their WTO complaint against the US tariff actions.
Additionally, on March 4, 2025, MOFCOM revealed non-tariff measures restricting exports of dual-use items to 15 US entities in the defense sector, citing national security concerns. This action included adding 10 US entities to the Unreliable Entity List (UEL) and banning imports from certain US firms, such as gene sequencers from Illumina, Inc. China’s customs authorities further suspended imports of logs and soybeans from specific US entities due to pest concerns, highlighting the broad scope of the retaliatory measures.
China also initiated an anticircumvention investigation into cut-off shifted single-mode optical fiber from the United States, marking a significant development in trade disputes. Allegations involve US exporters altering product descriptions to evade existing tariffs. The Chinese government has not overtly connected these actions to the broader trade conflict, suggesting they may utilize non-tariff methods as part of their retaliation strategy.
For inquiries related to the report or other trade matters, individuals are encouraged to contact the partners and senior attorneys within White & Case’s Global International Trade Practice.
In summary, China’s announcement of new tariffs and non-tariff measures in response to US tariff increases illustrates the escalating tensions in international trade relations. The actions taken include significant retaliatory tariffs on a wide range of agricultural products, the restriction of dual-use item exports, and investigations into alleged circumvention of trade duties. These measures underscore the complexities of trade disputes and the potential for broader implications within global markets.
Original Source: www.whitecase.com
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