China hits back at Trump tariffs with 10-15% duty on select US goods

This announcement comes in response to the 10 per cent tariffs announced by Trump on China

China on Tuesday announced tariffs ranging from 10 to 15 per cent on select  goods from the United States starting February 10, marking a significant escalation in trade tensions between the two countries. This action is a direct response to the US government's recent decision to levy a 10 per cent tariff on Chinese products, citing concerns over Beijing's handling of fentanyl control.

 

China’s Finance Ministry has announced countermeasures, including a 15 per cent levy on US coal and liquefied natural gas (LNG) and a 10 per cent tariff on crude oil, farm equipment, and certain automobiles. These tariffs will come into force on February 10.

 

 

In addition to the tariffs, China has also introduced a set of export controls on crucial minerals and launched an anti-monopoly probe targeting US tech giant Google.

 

China’s Commerce Ministry and Customs Administration, had also earlier said that it would file a suit with the World Trade Organisation and take actions to "safeguard its rights and interest".

 

Pause for neighbours, no reprieve for China

Earlier today, President Donald Trump agreed to delay the imposition of a 25 per cent tariff on goods from Canada and Mexico for 30 days, easing the possibility of a trade war with the two neighboring countries. 

 

"Tariffs for us, nobody can compete with us because we're the pot of gold... But if we don't keep winning and keep doing well, we won't be the pot of gold," Trump said on Monday afternoon. 

 

Trump has acknowledged that higher tariffs could increase costs for US consumers but defended them as necessary to curb illegal immigration, combat drug trafficking, and support domestic industries.

 

The temporary tariff reprieve for Mexico and Canada was welcomed by financial markets. Both countries agreed to step up border enforcement, with Mexico deploying 10,000 National Guard troops to curb illegal migration and drug trafficking. Canada, in turn, pledged new border security measures and initiatives to combat organised crime, money laundering, and fentanyl smuggling.

 

US- China trade war

Meanwhile, the 10 per cent tariff on Chinese imports is still expected to go into effect 00:01 EST (05:00 GMT) onwards on Tuesday. However, a White House spokesperson confirmed that Trump will not be speaking with Chinese President Xi Jinping until later this week.

 

Trump had previously launched a two-year trade war with China in 2018, aiming to address the large US trade deficit. Under the 2020 trade deal, China had committed to purchasing an additional $200 billion in US goods annually. However, the Covid-19 pandemic disrupted these commitments, and China’s trade surplus with the US widened to $361 billion, according to Chinese customs data.

 

Trump turns to Europe

Trump has signalled that the European Union could be the next target of his trade policies. EU leaders, meeting in Brussels, warned that they would retaliate against any US-imposed tariffs but expressed willingness to negotiate.

 

Britain, which exited the EU in 2020, may be spared from these measures, Trump hinted.