On April 4, 2025, China announced the imposition of a 34% tariff on all U.S. imports, effective April 10, 2025. This decision is a direct response to the U.S. government's recent tariff increases on Chinese goods. ​

In addition to the tariffs, China has implemented stricter export controls on rare earth elements, including samarium and gadolinium, which are critical for high-tech and defense applications. Furthermore, China has blacklisted 11 foreign entities and suspended imports from two American poultry suppliers due to regulatory violations.

These actions have intensified the ongoing trade tensions between the world's two largest economies, leading to significant volatility in global financial markets. Major indices, such as the S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures, each fell nearly 3% following the announcement.

The escalating trade dispute has raised concerns about a potential global recession, with financial institutions like JP Morgan increasing the likelihood of such an event to 60%. ​

Both nations have expressed a willingness to negotiate, but as of now, no formal discussions have been scheduled. The international community continues to monitor the situation closely, given its far-reaching implications for the global economy.