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Tightening on rare earths and auto sector: China reacts to new measures announced by Trump and denounces “trade bullying practices”

China is responding firmly to new tariffs imposed by the United States. Following President Donald Trump’s announcement of additional tariffs of 34% on Chinese exports, the Beijing government announced today that tariffs of the same magnitude will come into effect on all imports of US goods on 10 April. At the same time, export controls were announced on seven rare earth chemicals, which are strategic for technology and electronics.

The restricted materials include gadolinium, used in magnetic resonance imaging, and yttrium, a key component in consumer electronics. A measure that also indirectly affects the Western high-tech industry, which is dependent on the supply of these materials.

Beijing has also filed a complaint with the World Trade Organisation (WTO), accusing the US of violating the rules of the multilateral system. ‘This is a typical unilateral bullying practice that undermines the global economic and trade order,“ reads the note from the Chinese Ministry of Commerce, which urged Washington to ‘immediately correct its wrong practices”.

The China Association of Automobile Manufacturers (Caam) also expressed clear opposition to the imposition of additional 25% duties on US cars and parts, calling it “an act of unilateralism” that “disrupts normal trade flows”. Caam warned of the effects of the decision, which risks destabilising global supply chains, driving up prices and hampering global economic recovery.

The trade crisis between the two superpowers, already tense in recent months, is thus escalating at a particularly fragile time for the global economy. And the clash between Washington and Beijing seems destined to enter a new phase of strategic opposition.

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