Insight Report

Brunswick Analysis China Expands Retaliation: Export Controls, Blacklists, and Tariff Escalation Target U.S. Firms

14 Apr 2025

Overview

Following the Trump administration’s April 10 decision to raise tariffs on Chinese imports to 145%— while simultaneously granting a 90-day pause on most tariff hikes for other trading partners—Beijing has issued a coordinated and escalating series of countermeasures. The U.S. decision effectively isolates China, and Beijing’s latest steps appear aimed at signaling both resolve and retaliation in response.

China’s new measures include a steep increase in tariffs on U.S. goods to 84%, the expansion of the Unreliable Entity List, and the imposition of export controls on 12 additional American firms operating in sectors tied to defense, aerospace, and dual-use technologies.

This marks the latest exchange in a fast-intensifying trade conflict between the world’s two largest economies. While China’s actions have thus far mirrored U.S. moves rather than preempted them, the scope and timing of its response reflect a growing willingness to deploy regulatory and legal tools to assert economic sovereignty. Officials in Beijing continue to describe their approach as proportionate and rules-based, even as they concentrate efforts on firms linked to U.S. national security policy.

This note focuses on the latest set of Chinese responses. For a summary of China’s initial round of countermeasures issued earlier this month, please see our prior note.

The sections that follow break down each new measure in detail, examine how Chinese authorities may respond next, and assess how businesses should prepare for further disruption.

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