Trading Blows: China and US Spiral into Tariff War

China has imposed a 34% tariff on US imports in retaliation to similar US measures. Beijing also restricted rare earth exports impacting US tech and defence sectors, prompting a lawsuit at the WTO. Tensions rise as both nations jockey for leverage in trade negotiations.

In a rising trade conflict, China retaliated against the United States by imposing a significant 34% tariff on US imports, escalating trade tensions between the two economic powerhouses. This move responds to President Donald Trump's decision to apply similar tariffs on Chinese goods as part of sweeping trade reforms.

Coinciding with the tariffs, China declared export controls on specific rare earth metals crucial to defense and technology sectors in the US. The strategic resource restrictions are seen as a direct hit to American industries, prompting further diplomatic friction. Beijing justified the measures by accusing the US of trading violations and unilateral practices.

As the global trading environment braces for further disruptions, economic analysts warn of progressive tension and the risk of a full-scale trade war. Both nations remain firm in their stances, with Beijing's latest actions strengthening its position in negotiations, despite the looming possibility of compound economic consequences.

(With inputs from agencies.)