China’s State Council Tariff Commission today announced sweeping retaliatory tariffs on all imported US goods, escalating trade tensions between the world’s two largest economies. Effective 12:01 AM on April 10, a 34 per cent additional tariff will apply to all US-origin imports, citing the US government’s recent imposition of ‘reciprocal tariffs’ on Chinese goods as a violation of international trade rules.

Key Details of the Tariff Measures

  • Scope: The 34 per cent levy applies to all US goods and will be added to existing tariffs, with no exemptions for bonded or tax-reduced imports.
  • Grace Period: Shipments departing the US before April 10 and arriving in China by May 13 will avoid the new tariffs.
  • Legal Basis: The move is grounded in China’s Tariff Law, Customs Law, and Foreign Trade Law, framed as a response to ‘unilateral bullying’ by the US.

Background and Escalation
The decision follows the Trump administration’s April 2 announcement of a 54 per cent total tariff on Chinese imports, combining a new 34 per cent levy with existing 20 per cent duties. China had earlier imposed 15–10 per cent tariffs on select US agricultural products in March, but the latest measures mark a significant escalation.

Insights on China’s 2024 Imports from US (Chemical and Energy Focus)

Key Highlights

1. Energy Dominance

  • Liquefied Propane ($11.14 billion) and Crude Oil ($6.02 billion) accounted for ~75 per cent of the listed chemical/energy imports, underscoring China’s reliance on US energy for industrial and petrochemical needs.
  • LNG ($2.4 billion) remained critical until halted in early 2025 due to tariffs.

2. Chemicals

  • Phenol ($32.36 million) and silicates ($3.2 million) reflect demand for resins, adhesives, and construction materials.
  • Phosphides ($15.23 million) and iodine ($1.04 million) highlight niche industrial applications in electronics and pharmaceuticals.

3. Petrochemical Derivatives

  • Saturated hydrocarbons ($2.06 billion), including methane, ethane, propane, and butane, for plastics production.


Impact of 2025 Tariffs

  • 34 per cent Additional Duty: Effective April 10, 2025, targets all US goods, risking supply chain fragmentation for propane, crude oil, and specialty chemicals.
  • Market Shifts: China may pivot to Middle Eastern propane and Qatari LNG to offset US reliance.

Strategic Implications

  • Diversification Pressures: Chinese importers are likely accelerating supply chain localisation and alternative sourcing (e.g., Iranian propane, Russian crude)
  • Global Ripple Effects: Tariffs threaten price stability for plastics, fertilisers, and electronics globally.

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