AI Overview
China has offered strong and varied resistance to US tariff increases in 2025, primarily through retaliatory tariffs, expanded non-tariff measures, and diplomatic and legal challenges. Since the US tariff escalations began in February 2025 under the second Trump administration, Beijing has engaged in a rapid, tit-for-tat escalation of trade actions.
Retaliatory
tariffs
China
has imposed reciprocal tariffs on a wide range of US imports throughout 2025,
corresponding to US tariff hikes.
Escalating
rates: Following a series of US tariff hikes, China matched reciprocal
increases. For example, when the US raised reciprocal tariffs on Chinese
imports to 84% in April, China responded with an 84% retaliatory tariff
increase on US-origin goods.
Effective
embargo: The extreme tariff rates reached in April 2025 created a
near-embargo on goods moving between the two countries before a temporary truce
was reached.
Targeted sectors: China's retaliatory tariffs have targeted specific US economic sectors, including agriculture and energy. In March 2025, China imposed additional tariffs on US agricultural products like soybeans, pork, beef, and natural gas.
Non-tariff
countermeasures
Beyond
tariffs, China has employed other strategies to increase economic pressure on
the US.
Export
controls on rare earths: China, which holds a near-monopoly on rare-earth
metals essential for high-tech manufacturing and defense, has repeatedly
tightened export controls on these critical minerals. For example, in October
2025, China expanded these controls to include holmium, erbium, and other
strategic metals, prompting US threats of a new round of tariff hikes.
"Unreliable
Entity List": Beijing has added multiple US companies to this list
throughout the year, prohibiting them from engaging in trade or investment with
China. This primarily targeted companies in the defense and technology sectors.
Targeted
import suspensions: In March 2025, Chinese customs suspended imports from
several US soybean exporters and suspended imports of US logs, citing quality
and biosecurity issues. In April, China also halted most imports of US pork.
Investigations: China initiated an antitrust investigation into a major US tech company in February 2025, followed by the first-ever anti-circumvention investigation of existing antidumping duties on US optical fiber products in March.
Diplomatic
and legal resistance
China
has also resisted US actions through official statements and international
channels.
WTO complaints: China has filed formal complaints with the World Trade Organization (WTO), arguing that US tariff measures are illegal.
Public
statements: Chinese government officials and state media have publicly
condemned the US tariffs, with one commerce ministry spokesperson vowing in
October 2025 that China would "fight to the end".
Trade negotiation strategy: China's strategy has been characterized by both escalation and periods of de-escalation for negotiation. After trade talks in May and June led to a temporary tariff truce, further US actions prompted renewed escalations in October 2025.
Long-term
economic reorientation
In
addition to direct resistance, China is also pursuing long-term strategies to
reduce its vulnerability to US pressure.
Export diversification: China has successfully redirected exports once bound for the US to new markets in Africa, Southeast Asia, and Latin America.
Reduced
reliance on the US dollar: China has continued to decrease its holdings of
US Treasury securities.
Supply chain localization: The "Made in China 2025" initiative continues to push for greater technological self-sufficiency in key industries like semiconductors, reducing reliance on foreign tech.
In 2025, China resisted US tariffs with retaliatory tariffs, export restrictions on critical materials like rare earths, adding US entities to a trade blacklist, and pursuing other economic and legal actions. These countermeasures followed multiple rounds of US tariff increases throughout the year.
Retaliatory
tariff hikes
Following
a series of US tariff increases, China responded with its own hikes.
February
2025: After the US imposed 10% tariffs, China responded with 10–15%
tariffs on US energy and other goods.
March
2025: In response to the US doubling its tariff to 20%, China imposed
10–15% tariffs on US agricultural products.
April
2025: After the US imposed 34% reciprocal tariffs, China retaliated with
its own 34% tariffs on all US goods, which were quickly increased to 84% by
both sides.
October 2025: Following a fragile truce, escalating tensions led to the US threatening 100% tariffs, to which China vowed countermeasures.
Non-tariff
countermeasures
Beyond
direct tariffs, China implemented a range of other measures to pressure the
US.
Export controls: China expanded export controls on critical minerals, including rare earth materials vital for US defense and technology industries.
Trade
blacklists: China designated numerous US entities under its Export Control
List and Unreliable Entity List, restricting their ability to trade with or
invest in China.
Import suspensions: China suspended imports of certain US agricultural products, citing issues with safety and quarantine requirements.
Regulatory
actions: Beijing initiated investigations into US firms for antitrust and
circumvention of existing duties.
Diplomatic
and legal resistance
China
also pursued diplomatic and legal avenues to resist the US actions.
WTO
complaints: China filed formal complaints with the World Trade
Organization, challenging the legality of the US tariff measures.
Trade talks: Both sides have engaged in negotiations, with reports of meetings in October 2025 aimed at de-escalating the conflict.
Economic
strategy adjustments
Some
Chinese exporters have adapted to the tariffs by redirecting trade.
Market
diversification: Chinese exporters responded to the tariffs by selling
more goods to buyers in Europe, Latin America, and the Middle East and Africa.
Shift in focus: China's economy is shifting focus to rely less on exports and more on internal consumption to mitigate some effects of the trade war.
Norb Leahy, Dunwoody GA Tea Party Leader
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