On the evening of April 9, 2025, China's State Council Tariff Committee issued an announcement regarding its response to the U.S. government's latest tariff actions. The U.S. has raised its "reciprocal tariffs" on Chinese imports from 34% to 84%, effective April 8, 2025. The Chinese government expressed strong opposition to this decision, labeling it a significant escalation that infringes upon China's legitimate rights and undermines the multilateral trade system based on rules.

In response, China has decided to increase the tariff rates on U.S. products by the same margin, with the adjustment set to take effect at 12:01 PM on April 10, 2025. This change aligns with the tariffs outlined in the State Council's Tariff Committee's Announcement No. 4 of 2025. The Chinese Ministry of Commerce also condemned the U.S.'s unilateral and coercive measures, emphasizing that these actions violate World Trade Organization (WTO) rules. China has filed a formal complaint with the WTO dispute resolution mechanism, asserting its commitment to defending its legal rights and upholding the global trade order.

Moreover, the Chinese Ministry of Commerce took additional retaliatory actions by adding 12 U.S. entities to its export control list. These companies include American Photonics, Novotech, Inc., Echodyne, Marvin Engineering, Exovera, Teledyne Brown Engineering, BRINC Drones, SYNEXXUS, Firestorm Labs, Kratos Unmanned Aerial Systems, Domo Tactical Communications, and Insitu, Inc. The ministry justified this move as necessary to protect national security and interests, emphasizing that these entities posed potential risks to China's security. As a result, exports of dual-use items to these entities are now prohibited under China's Export Control Law.

In a further step, the Ministry of Commerce also placed six additional U.S. entities on China's “Unreliable Entity List,” which includes Shield AI, Sierra Nevada Corporation, Cyberlux Corporation, Edge Autonomy Operations LLC, Group W, and Hudson Technologies Co. The Chinese government has reiterated that the Unreliable Entity List is managed with caution, and only those foreign entities whose actions threaten China's national security are subject to it. Entities on the list may face trade restrictions or other consequences, depending on the nature of their violations.

This development follows a previous announcement on April 4, where 11 U.S. companies, including Skydio Inc. and BRINC Drones, were added to the Unreliable Entity List. These actions reflect China's growing determination to safeguard its security and interests in the face of what it views as increasingly aggressive and unilateral U.S. measures. The Chinese government has made it clear that law-abiding foreign companies have nothing to fear and that China remains committed to providing a stable and predictable business environment for foreign enterprises operating within its borders.

As the global trade landscape continues to be shaped by these developments, it remains to be seen how the broader international community, including both China and the U.S., will navigate this evolving situation in accordance with international laws and norms.