China announced on Friday that it will impose a 34% tariff on all U.S. imports starting from April 10, retaliating against the latest round of tariffs imposed by the U.S. under President Donald Trump. The move follows Trump's decision earlier this week to levy an additional 34% tariff on all Chinese goods, which has significantly strained trade relations between the two largest global economies. The new tariffs bring the total U.S. duties on Chinese goods to 54%, a level higher than many analysts had anticipated and one that could deeply affect the nearly $600 billion trade relationship between the two countries.

The Chinese government criticized the U.S. tariffs, calling them "inconsistent with international trade rules" and damaging to China's legitimate rights and interests. The State Council Tariff Commission emphasized that the move is a form of unilateral bullying, further escalating the global trade conflict that has worsened since Trump's administration ramped up its protectionist policies. Beijing also voiced concerns that these tariffs would endanger global economic stability and disrupt supply chains, which have already been under pressure due to the ongoing trade tensions.

In addition to the tariffs, China's government also took further steps to retaliate, including adding 11 American companies to its ?unreliable entity list,? with several drone manufacturers among those targeted. Furthermore, China imposed export controls on 16 U.S. firms, restricting the sale of dual-use items, which could have significant implications for companies operating within sensitive sectors. The Chinese Ministry of Commerce also launched anti-dumping investigations into medical CT X-ray tubes from the U.S. and India.

As the trade war deepens, U.S. markets experienced sharp declines. Stock futures plummeted, with Dow Jones futures dropping by over 1,000 points, or 2.3%. Both the S&P 500 and Nasdaq were set to open significantly lower, while Chinese stocks also suffered, though to a lesser extent. The global market turmoil continued on Friday after a significant sell-off the previous day, with European stocks seeing a sharp drop of over 3%, marking one of their worst performances in years.

Analysts believe these escalating tariffs will likely lead China to seek alternative trading partners, and potentially implement more stimulus measures to bolster its weakening economy. After a year of battling a property crisis and slow recovery from the COVID-19 pandemic, Beijing is under growing pressure to stimulate economic growth and safeguard its interests amidst a rising tide of protectionism.

The tariffs are expected to exacerbate ongoing economic challenges, as businesses with supply chains tied to China will face increasing costs, and global economic growth remains uncertain. The trade conflict, while focused on specific industries, now threatens to have broader implications for the global economy, further deepening the divide between the U.S. and China.