China imposes 34% tariffs on all US products – opening up opportunities for more Brazilian exports.
Brazilian agricultural exports compete directly with the agribusiness of the United States.
247 - In yet another escalating move in trade tensions with the United States, the Chinese government announced on Thursday (4) that it will apply an additional 34% tariff on all US products starting April 10.
According to the official statement, the new tariff will be added to the currently existing rates, significantly increasing the cost of importing goods from the US into Chinese territory. This measure is accompanied by a series of other trade sanctions, including stricter controls on exports of items considered strategic.
Rare earth exports in the crosshairs - China's Ministry of Commerce also announced that, starting April 4th, it will restrict the export of medium and heavy rare earth elements to the United States. Among the elements listed are samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—all fundamental to high-tech sectors such as the semiconductor, arms, and electric vehicle industries.
According to the ministry, the decision is based on national security legislation and aims to protect the country's strategic interests, as well as "fulfill international obligations, such as those related to non-proliferation," as highlighted in the statement: "The objective of implementing export controls by the Chinese government on relevant items, in accordance with the law, is to better safeguard national security and the country's interests, as well as fulfill international obligations such as non-proliferation."
US companies under sanctions - Furthermore, China has included 16 US entities on its export control list and added another 11 to its so-called "unreliable entities list." Inclusion on the latter allows Beijing to take direct punitive action against foreign companies, including banning business activities in the country, freezing assets, and other administrative sanctions.
