China has responded to President Donald Trump’s latest tariffs by imposing its own duties on American goods, escalating tensions in a trade dispute that has long strained economic relations between the two nations.
The Chinese Finance Ministry announced new tariffs, including a 15% duty on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks.
In addition, China’s Commerce Ministry and Customs Administration have introduced export controls on critical minerals such as tungsten, tellurium, ruthenium, and molybdenum, citing national security concerns.
Further intensifying the standoff, China’s State Administration for Market Regulation has launched an antitrust investigation into Google, though details of the probe remain unclear. The newly imposed tariffs are set to take effect next Monday.
The latest move follows Trump’s decision to impose a 10% tariff on all Chinese imports to the U.S. The White House has confirmed that the President will not be engaging in direct talks with his Chinese counterpart, Xi Jinping, until later in the week.
Trade tensions between the two superpowers date back to Trump’s first term when a brutal two-year trade war disrupted global supply chains and weighed heavily on the world economy.
The 2020 trade deal, which required China to increase U.S. goods purchases by $200 billion annually, failed to materialize due to the COVID-19 pandemic.
China’s trade deficit with the U.S. has since widened to $361 billion, based on customs data released last month.
Economic analysts warn that the current escalation could lead to further economic strain.
Oxford Economics, in a recent note, downgraded its China economic growth forecast, stating that the likelihood of additional tariffs remains high.
Beyond economic implications, Trump has linked trade policies to national security concerns, warning of potential higher tariffs unless Beijing takes stronger action to curb fentanyl exports to the U.S.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” Trump said on Monday.