In response to President Donald Trump's new tariffs, China is implementing a 34% tax on all imports from the United States, indicating thorough planning. This move puts Chinese exports at a disadvantage but puts pressure on U.S. exporters, potentially serving as bargaining power in future discussions. China's retaliatory tariffs, effective immediately, mirror Trump's tariffs on Chinese goods imposed earlier, in addition to previous 10% tariffs announced in February and March, connected to accusations of China's involvement in the fentanyl crisis. To escalate the situation, China is also enhancing export controls on rare earth minerals crucial for various technologies and filing a lawsuit at the World Trade Organization.

Furthermore, Beijing has halted imports of sorghum, poultry, and bonemeal from several U.S. companies, expanded the list of restricted trade companies, and launched an anti-monopoly probe into DuPont China Group Co. The recent barrage of tariff hikes and import restrictions brings back memories of the previous trade war between the U.S. and China during Trump's term, which somewhat continued under President Joe Biden. Back then, China responded with levies on coal, liquefied natural gas, and other U.S. products. Recently, China initiated an anti-monopoly investigation against Google and added PVH, the parent company of American fashion brands Tommy Hilfiger and Calvin Klein, to its "unreliable entity" list. Additionally, China imposed restrictions on the exports of rare metals essential for defense and clean energy sectors.

The escalating tensions raise concerns about the trade war between the two nations. Some significant events in the ongoing trade dispute include Trump's executive order in March 2017 to address trade deficits through stricter tariff enforcement. In April 2017, Trump and Chinese President Xi Jinping attempted to tackle trade imbalances through a 100-day plan, which ultimately failed by July. Later in August 2017, Trump initiated an investigation into alleged Chinese theft of U.S. intellectual property, estimated to cost up to $600 billion annually.