China has unveiled a series of economic countermeasures against the United States in response to President Donald Trump’s decision to impose a 10% tariff on Chinese imports.
Announced on Tuesday by China’s Ministry of Finance, the measures introduce new tariffs and export restrictions targeting key U.S. industries.
The latest tariffs, set to take effect on February 10, impose a 15% levy on specific coal and liquefied natural gas products, while crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks will face a 10% duty.
Additionally, Beijing has tightened its grip on crucial metal exports, implementing immediate restrictions on more than two dozen products, including tungsten, widely used in industrial and defense applications and tellurium, a component in solar cell manufacturing.
Given that China accounts for over 80% of global tungsten production, these restrictions could have significant implications.
In a further escalation, China has placed two American companies; biotech firm Illumina and fashion conglomerate PVH Group, which owns Calvin Klein and Tommy Hilfiger on its unreliable entities list.
Authorities accused the firms of violating “normal market trading principles.”
Meanwhile, China’s State Administration for Market Regulation has launched an antitrust investigation into Google, despite the company having limited operations in China due to restrictions on its search engine.
These moves come in direct response to the broad 10% tariff the White House enforced on Chinese imports last Saturday.
In a statement on Sunday, Beijing strongly condemned the tariffs, pledging to “resolutely defend its rights” by filing a complaint with the World Trade Organization (WTO) and taking “corresponding countermeasures.”
On Tuesday, China’s Ministry of Commerce confirmed that it had formally challenged the U.S. tariffs at the WTO, stating, “The US practice seriously undermines the rules-based multilateral trading system, undermines the foundation of economic and trade cooperation between China and the United States, and disrupts the stability of the global industrial chain and supply chain.”
China’s response, announced at the close of its week-long Lunar New Year holiday, signals the possibility of another round of trade tensions between the two economic giants.
However, it does not entirely rule out future negotiations or diplomatic engagements.
The Trump administration justified its tariff decision as part of broader trade measures that also targeted Mexico and Canada, citing concerns over illegal immigration and the flow of fentanyl into the U.S.
However, following discussions with the leaders of Mexico and Canada, Trump agreed to pause tariffs against those nations after securing commitments to strengthen border security.
Trump has indicated that a conversation with Chinese President Xi Jinping could take place within 24 hours, though Beijing has not confirmed any such plans.
The potential talks would be crucial in shaping U.S.-China relations, especially with ongoing disputes over trade imbalances, technology competition, military tensions, and the fentanyl crisis.
U.S. law enforcement agencies argue that Chinese entities supply precursor chemicals for fentanyl, which drug cartels in the U.S. and Mexico use to manufacture the deadly substance.
Beijing, however, insists it has taken substantial steps to curb these exports and warns that the new tariffs “erode the foundation of trust and cooperation in the field of drug control between China and the United States.”
While the current 10% tariffs fall well below the 60% duties Trump had previously threatened during his campaign, they could mark the beginning of a more aggressive trade stance.
The White House is set to release an economic review of U.S.-China trade relations by April 1, which could lay the groundwork for additional tariff hikes.
Despite the tensions, Trump has expressed optimism about a possible trade agreement and cooperation on broader geopolitical issues, including efforts to end the war in Ukraine.
He has also temporarily halted enforcement of a law that would ban TikTok in the U.S. unless its Chinese parent company divests its American operations.
As both nations weigh their next moves, Beijing appears intent on avoiding a repeat of the prolonged trade war from Trump’s first term, which saw tariffs imposed on hundreds of billions of dollars in goods.
However, China’s economy, though more diversified than before, faces its own challenges, including slowing growth.
In the coming weeks and months, all eyes will be on how Washington and Beijing navigate this renewed trade standoff and whether diplomatic efforts can prevent further economic escalation.
