China has announced it will impose a 34% tariff on all U.S. products in response to the tariffs imposed by the U.S. on imports from China. Other countries, such as Taiwan and Vietnam, are also scrambling to respond to the higher U.S. tariffs. China has taken targeted action, including imposing export controls on rare earths and suspending imports of chicken from two U.S. suppliers. Additionally, China has added 27 firms to lists of companies subject to trade sanctions or export controls. The global trading system is facing serious deficiencies, according to the president of the EU's European Commission, who also criticized the use of tariffs as the first and last tool to fix trade issues.