News
China announces retaliatory tariffs on US imports in an escalating trade-war

China has taken significant measures against Trump’s new levies and imposed tariffs on US imports. It even initiated an ‘anti-monopoly’ investigation into Google, elevating new trade tensions between both the top technological countries.
The story began when Donald Trump set new levies on China products after midnight on Tuesday. Trump described a 10% extra tariff on Chinese imports into the US.
Inputs reveal that Donald Trump increased the tariff as Beijing hasn’t been taking enough measures to pause the sales of prohibited drugs in the United States.
“China hopefully is going to stop sending us fentanyl (a deadly opioid), and if they’re not, the tariffs are going to go substantially higher” – Trump warned on Monday.
However, the unplanned tariff rise renewed the trade war between China and the US. The China Finance Ministry counterattacked Trump’s levis with new retaliatory tariffs on US imports in no time, igniting new tension for the US authorities.
China has slammed a 15% levy on US coal and LNG (Liquefied Natural Gas). It also charged 10% for crude oil, farming machinery, and certain smart car exports.
On the flip side, China started probing Google and some other companies like PVH Corp. and US biotech firm Illumina. Other than these, China’s Commerce Ministry further described tariffs on metals used in high-tech gadgets and energy solutions.
As per reports, China will bring these tariffs into action on February 10. By that time, the US and Beijing can try to settle down the situation mutually. Donald Trump also plans to talk with Xi Jinping – China’s President later this week.
Regarding the illicit drug, fentanyl, the Chinese authorities called it “America’s problem”. They added that it will challenge the tariffs (if happens) at the World Trade Organization and take other countermeasures, but also let the door open for talks.
Tariffs on Mexico and Canada
Donald Trump recently paused tariffs on Mexico and Canada. He also agreed to a 30-day halt in favor of boosting border enforcement efforts for the two countries. Although that doesn’t seem to be the case for China. Gary Ng – the senior economist at Natixis said:
“Unlike Canada and Mexico, it is clearly harder for the US and China to agree on what Trump demands economically and politically. Even if the two countries can agree on some issues, it is possible to see tariffs being used as a recurrent tool, which can be a key source of market volatility this year.”

China announces retaliatory tariffs on US imports in an escalating trade-war (Image Credits: X)
(source)