China retaliates with 34% tariff on US goods, stock futures take a dive

China announced a 34% tariff on American imports, mirroring US President Donald Trump’s latest duties on Chinese goods announced earlier this week.

The tariffs are scheduled to take effect on April 10.

The Ministry of Commerce issued a statement Thursday morning condemning Washington’s decision and framing the move as a threat to the stability of the global trade system.

“This is a typical act of unilateral bullying,” the ministry said, calling on the US to “immediately” remove the tariffs and instead resolve disputes through “fair and equal dialogue.”

Alongside the tariff announcement, the ministry added 11 US companies to its “unreliable entities” list, a designation that effectively bans them from conducting business in China or partnering with Chinese firms.

In addition, Beijing announced restrictions on the export of select rare earth elements critical to the manufacture of electric vehicles, semiconductors, and military equipment.

China’s customs agency separately said it would suspend chicken imports from certain US agricultural exporters, though it did not specify which companies or facilities would be affected.

The reciprocal 34% tariff move marks a sharp deterioration in trade relations and revives fears of another prolonged tit-for-tat standoff.

US stocks look set for another dive

The US stock market was set for another sharp drop on Friday after China response, escalating fears that a trade war could push the global economy into recession.

Dow Jones Industrial Average futures fell 1,078 points, or 2.6%.

This followed a 1,679.39-point decline on Thursday.

S&P 500 futures were down 2.6% after the index dropped 4.84% the previous session.

Nasdaq 100 futures declined 3% as tech companies with significant exposure to China came under pressure.

Apple and Qualcomm were down 5% and 6%, respectively, in premarket trading. Tesla dropped 5%, Caterpillar declined 6%, and Nvidia fell about 4%.

The Nasdaq Composite has been the hardest hit this week, falling 4.5% as investors reduced risk amid tariff concerns.

The S&P 500 and Dow are down 3.3% and 2.5%, respectively, for the week.

Both the Nasdaq and S&P 500 are on track for their worst weekly performance since September 2024 and their sixth weekly loss in the past seven.

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