Chinese side retaliates and imposes 34% tariffs on imports from the US! Understand which American imported goods will be affected in one article.

Caixin reported on April 5th that on April 2nd, local time, the US government announced the imposition of "equivalent tariffs" on all trade partners. China immediately stated that it would take countermeasures to defend its legitimate rights and interests. One day later, on April 4th, China implemented a series of retaliatory measures, in addition to imposing a 34% tariff on the US, China also imposed sanctions on relevant US entities. Starting from 12:01 on April 10, 2025, China will impose an additional 34% tariff on all imported goods originating from the US, on top of the existing applicable tariff rates. China has filed a lawsuit with the World Trade Organization against the US for imposing "equivalent tariffs" on Chinese products. The Ministry of Commerce has listed 16 US entities on an export control list, prohibiting the export of dual-use items to them. The Ministry of Commerce has decided to include 11 entities, including Skydio, on the unreliable entity list. The State Administration for Market Regulation has initiated an investigation into DuPont China Group Limited. Notably, in the series of retaliatory measures, China has targeted specific areas such as medical CT tubes, the medium and heavy rare earth industry, and US poultry companies with precise strikes. The Ministry of Commerce has initiated an industrial competitiveness investigation into imported medical CT tubes. The Ministry of Commerce has initiated an anti-dumping investigation into imported medical CT tubes from the US and India. The Ministry of Commerce, in conjunction with the General Administration of Customs, has announced and implemented export control measures on seven categories of medium and heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. The General Administration of Customs has suspended the import qualifications for sorghum from one US company, bone meal from three US companies, and poultry products from two US companies. With the implementation of China's strong retaliatory measures, it is widely expected that US exports to China will be significantly affected, the demand for US imported goods in China will be reshaped, and the domestic production process for certain products may accelerate, especially in industries with a large absolute amount of imports from the US, opening up further opportunities for domestic production. According to a research report released by Galaxy Securities today, high-tech products in areas such as aircraft and high-end equipment have a relatively high dependence on imports from the US or a large absolute amount of imports, and these four categories of goods will be affected to varying degrees. 1. Electrical machinery, high-end equipment, and other high-tech products (such as semiconductor equipment, components, optics, nuclear reactors, etc.) have a relatively low import dependence but a large absolute amount of imports, demanding higher requirements for localization and self-controllability. 2. Aircraft account for half of the $12.4 billion imports in 2024, and a substantial increase in tariffs will benefit France and domestic large aircraft production. 3. Shenzhen Agricultural Power Group (soybeans, vegetable oils, etc.) has a certain degree of dependence and is essential goods, which may lead to a temporary logic of price increases, but there are alternative import countries (such as Argentina). 4. Industries such as automotive, chemical, plastics, and pharmaceuticals may also experience minor disruptions. According to the research report from Galaxy Securities, the highest level of dependence on US imports in China is in the field of transportation equipment, such as aircraft, spacecraft, and their parts, with a dependence rate of 50%. Other industries with an import dependence of over 20% include edible oils, food and beverages, tobacco, and paper. In terms of the amount of imports, most of the goods from the US with a value exceeding $10 billion in 2024 are concentrated in mineral products, electrical machinery, instruments, and vegetable oils. This article was reprinted from Caixin, GMTEight Editor: Chen Yufeng.