KKN Gurugram Desk | In a significant and aggressive countermeasure, China has announced a 34% tariff on a range of American-imported goods, a move seen as a direct response to the United States’ similar tariff imposed earlier this year. The new Chinese duties are set to take effect from next week, intensifying fears of a full-blown trade war between the world’s two largest economies.

This escalation follows the two rounds of 10% tariffs imposed by former President Donald Trump in February and March 2025 on Chinese imports, reigniting global concerns around economic stability, supply chains, and inflation.

???? Wall Street Reacts: US Stock Market Suffers Sharp Decline

Following the announcement, the US stock markets experienced a steep decline on Friday. The Dow Jones, Nasdaq, and S&P 500 all saw red as investors rushed to reassess risks in light of renewed trade tensions.

Analysts fear that this could derail already fragile recovery patterns in sectors such as technology, agriculture, and manufacturing, which are highly dependent on US-China trade flows.

⚙️ What China’s Countermeasures Include:

China’s response is not limited to tariffs. The country has launched multiple economic and legal countermeasures, including:

???? 1. Suspension of Agricultural Imports

• China has suspended imports of sorghum, poultry, and bone meal from six major US companies.

• The Chinese Customs Administration cited the presence of furazolidone (a banned substance) in poultry shipments and salmonella in bone meal feeds.

• Sorghum imports were reportedly found to be contaminated with excessive fungal levels.

???? 2. Export Controls on Critical Minerals

• China is set to tighten export controls on rare earth minerals, which are essential for technology manufacturing, including semiconductors, electric vehicles, and military-grade electronics.

⚖️ 3. WTO Complaint

• China has formally filed a complaint against the US at the World Trade Organization (WTO), arguing that the US tariffs violate global trade rules.

???? 4. Legal Action Against US Corporations

• China has initiated an anti-monopoly investigation against the DuPont China Group, a subsidiary of the American chemical giant.

• 27 US companies have been added to China’s restricted trade list.

• A further 11 companies, including drone manufacturers Skydio and Brinc Drones, have been labeled as “unreliable entities”, restricting their trade and investment activities within China.

???? Trump’s Reaction: “China Panicked”

Former US President Donald Trump addressed the situation on his platform Truth Social, stating:

“China did the wrong thing. They’re panicking – it’s the one thing they can’t handle.”

Despite the harsh rhetoric, Trump left the door open for negotiations, especially regarding the controversial TikTok divestment, saying he could revisit the deal even though China has suspended the talks after the tariffs were announced.

Trump has extended the 75-day deadline for TikTok to separate from its Chinese parent company as required under federal law.

???? What’s at Stake: The Bigger Picture

???? 1. Global Supply Chains at Risk

With rare earth minerals under stricter control and US tech firms facing restrictions, global supply chains in electronics and defense manufacturing are at risk of disruption.

???? 2. Agriculture Sector Impact

US farmers and food exporters are likely to suffer significantly, especially in grain and poultry exports. China has traditionally been a major importer of American agricultural products.

???? 3. Rising Uncertainty for MNCs

The addition of companies like DuPont, Skydio, and others to China’s “unreliable entity list” puts American multinational corporations at strategic risk.