China hits US with tariffs, rare earth export controls

China will impose a 34% tariff on imports of all U.S. products beginning next Thursday, the country’s Customs Tariff Commission said Friday.

The new tariff matches the rate of U.S. “reciprocal” tariffs that President Donald Trump announced on Wednesday, claiming China has imposed duties and other measures on American goods that amount to a 67% trade barrier.

“China firmly opposes this and will take countermeasures to safeguard its own rights and interests,” China’s Commerce Ministry said in a statement. “There are no winners in trade wars, and there is no way out for protectionism. China urges the U.S. to immediately lift unilateral tariffs and properly resolve differences with its trading partners through equal dialogue.”

China was the third-ranked U.S. trading partner in 2024 at $582 billion in cross-border commerce.

Trump unveiled a broad tariff plan for all U.S. trade partners on Wednesday, during what he has referred to as “Liberation Day.”

Trump’s plan includes a baseline 10% tariff on trade partners, as well as 25% tariffs on certain imported vehicles and auto parts arriving into the U.S. The plan also calls for a 34% tax on imports from China and 20% on the European Union, among others.

As part of its retaliatory measures, China also said it will impose more export controls on rare earth materials, which are used in high-tech products such as computer chips and electric vehicle batteries.

In a separate announcement, China’s Commerce Ministry said on Friday it has added 16 U.S. companies to its export control list.

Trade with the 16 companies will be prohibited unless they get special authorization from the Chinese government, according to a news release. The companies are mainly operating in the security, defense and aerospace sectors.

They include High Point Aerotechnologies, Logistics Holdings, Source Intelligence, Coalition For a Prosperous America, Sierra Nevada Corp., Edge Autonomy Operations, Cyberlux Corp., Hudson Technologies, Saronic Technologies, Oceaneering International, Stick Rudder Enterprises, Cubic Corp., S3 AeroDefense, TCOM, TextOre and ACT1 Federal.

Later Friday morning, China added 11 U.S. tech companies to its export control list. They include Skydio, Brinc Drones, Red Six Solutions, Synexxus, Firestorm Labs, Kratos Unmanned Aerial Systems, HavocAI, Neros Technologies, Tactical Communications, Rapid Flight and Insitu.

These companies may not make new investments in China, and their management teams’ access to the country will be limited or prohibited.

Related: Trump unveils wide-ranging global ‘reciprocal’ tariff plan

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