China’s latest round of retaliatory tariffs on American goods took effect on Monday, intensifying the ongoing trade war between the world’s two largest economies. This escalation follows US President Donald Trump’s new 10% import tax on all Chinese products, which came into force on February 4. Beijing responded swiftly, unveiling its own countermeasures minutes later, deepening the rift between the two economic powerhouses.
Among the latest Chinese tariffs, a 15% tax has been imposed on US coal and liquefied natural gas (LNG) products. Additionally, American crude oil, agricultural machinery, and large-engine vehicles now face a 10% import tax. The move underscores China’s strategy of targeting critical US exports to exert economic pressure on Washington.
Meanwhile, Trump has also announced plans to implement a 25% tariff on all steel and aluminum imports into the US, with a formal declaration expected in the coming days. While he had previously negotiated exemptions with Canada and Mexico, other nations remain uncertain about their trade status. Trump has frequently criticized European Union tariffs on US-made cars, hinting at possible trade penalties against the bloc. In an interview last week, he suggested that tariffs on EU goods could be imposed “pretty soon,” though he left room for a potential deal with the UK.
China’s response has not been limited to tariffs alone. Beijing has launched an anti-monopoly investigation into US tech giant Google, signaling broader economic pushback. Furthermore, PVH Corp., the parent company of fashion brands Calvin Klein and Tommy Hilfiger, has been added to China’s “unreliable entity” list. Additionally, China has tightened export controls on 25 rare metals essential to the production of electronic devices and military equipment, a move that could significantly disrupt global supply chains.
The US and China have clashed over trade policies for years, with Beijing recently filing a complaint with the World Trade Organization (WTO). China argues that the US tariffs are “discriminatory and protectionist” and violate international trade agreements. However, the WTO’s dispute resolution panel remains largely nonfunctional, limiting Beijing’s chances of a favorable ruling.
Despite the growing tensions, Trump has indicated no urgency to engage in direct talks with Chinese President Xi Jinping. Experts note that China is better positioned to navigate trade tensions now than during Trump’s first presidency, having diversified its global trade partnerships and bolstered its technological capabilities.
As both nations continue their economic brinkmanship, the global markets remain on edge, with industries from energy to technology bracing for further disruptions.
