U.S. tariffs announced just days ago.
Earlier this week, the U.S. government imposed sweeping punitive tariffs on imports from various countries. The tariff rates vary depending on the size of each country’s trade surplus with the United States. As a result, China is facing a steep 34% tariff.
Beijing wasted no time in responding. On Friday, China announced a retaliatory tariff—also 34%—on U.S. goods, effective April 10, according to reports from outlets, including the South China Morning Post. In addition to the counter-tariff, China is introducing new export restrictions on certain rare earth elements.
Export licenses will now be required for materials such as dysprosium, terbium, yttrium, gadolinium, samarium, lutetium, scandium, and their various compounds. These measures take effect immediately.
As the world’s leading producer of these critical raw materials, China is once again adopting a familiar strategy—previously seen with export controls on gallium and germanium. In those cases, exports temporarily halted following the policy’s implementation due to processing delays in the licensing system. Whether rare earth exports will face similar disruptions remains to be seen.
Cover image: blueringmedia via Canva
