China Counters US Tariffs with Rare Earth Export Controls

China has imposed a 34% additional tariff on US imports and export controls on rare earth metals, targeting American defense and tech sectors. This move counters President Trump's similar levies on Chinese goods. Both nations engage in a tit-for-tat trade war affecting global economic stability and sparking WTO challenges.

In a significant escalation of trade tensions, China announced on Friday a 34% tariff on imports from the United States. This move is in response to President Donald Trump's recent decision to levy similar tariffs on Chinese goods, escalating the ongoing tit-for-tat trade dispute between the two economic powerhouses.

Beyond tariffs, Beijing has introduced export controls on rare earth metals, crucial to defense, computer, and smartphone industries. The restrictions amplify pressure on these American sectors, with China's near-monopoly on these materials being a potential game-changer amidst the tensions. China claims the US tariffs breach WTO rules and undermine China's interests.

In retaliation, Beijing has filed a complaint with the World Trade Organization, alleging that the US's tariffs severely violate WTO norms. As the tariff tit-for-tat unfolds, experts warn of limited room for compromise and possible negotiations heading towards a more entrenched trade conflict, potentially leading to a global trade war.

(With inputs from agencies.)