China hits back with 34% tariff on all US goods after Trump's reciprocal measure

China announced on Friday a new 34% tariff on all American goods, a sharp retaliatory move against US President Donald Trump’s sweeping worldwide tariffs, further intensifying the trade war between the world’s two largest economies.

The Chinese finance ministry said the additional tariffs will take effect April 10, one day after the US fully implements its latest tariff hike.

It also announced controls on exports of medium and heavy rare-earths to the United States, effective April 4.

"The purpose of the Chinese government's implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfill international obligations such as non-proliferation," the Commerce Ministry said in a statement.

Trump imposed two rounds of 10% tariffs on Chinese imports in February and March. The latest measures include a 10% universal tariff effective April 5, followed by an additional 24% country-specific levy on April 9, taking total US tariffs on Chinese goods to 54%, nearing the 60% Trump threatened during his campaign.

The US president defended the move calling it “tough love” to correct decades of unfair trade practices.

“I have great respect for President Xi (Jinping) of China, great respect for China, but they were taking tremendous advantage,” he said.