China has just announced a 125% tariff on US products imported into its country starting April 12. This action was taken after the United States imposed a 145% tariff on Chinese products starting today. Unlike other countries that have accepted the high tariffs imposed by the United States, China has refused to give in and retaliate with each new tariff imposed on them.
Just last Wednesday, China imposed an 84% tariff on US products. China imposed export restrictions on seven more categories of rare earth elements (REE) on all countries in the world last week. REE is a material that is desperately needed to produce EV batteries, device screens and even weapons such as missiles. With a monopoly on over 70% of REE production, China wants to block the United States from accessing this necessary material.
China is also still refusing to sit down at the table to discuss how the issue of excessive tariffs can be resolved without further causing turmoil in the world economy.