China has implemented new import tariffs on U.S. goods in retaliation for tariffs imposed by President Donald Trump, further escalating the ongoing trade war between the world’s two largest economies. This move followed the U.S. imposition of an additional 10 percent tariff on all Chinese imports, which took effect at 12:01 a.m. ET (05:01 GMT).
Trump had also placed 25 percent tariffs on goods from Mexico and Canada, along with a 10 percent tariff on China, accusing the three countries of failing to curb the flow of illegal drugs, particularly fentanyl, into the U.S.
In response, China’s Finance Ministry announced a 15 percent tariff on U.S. coal and liquefied natural gas (LNG), and a 10 percent tariff on crude oil, agricultural equipment, and some automobiles. Additionally, China launched an antimonopoly investigation into Alphabet Inc. (Google’s parent company) and added PVH Corp. (owner of Calvin Klein) and biotechnology firm Illumina to its “unreliable entities list.” The Chinese government also revealed new export controls on rare earth elements and critical metals needed for high-tech devices and clean energy technologies. These new tariffs on U.S. goods will take effect on February 10, with the possibility of negotiations between the two nations.
A White House spokesperson confirmed that President Trump plans to speak with Chinese President Xi Jinping later this week.
Trump had temporarily delayed the 25 percent tariffs on Mexico and Canada for one month following talks with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. Both countries agreed to strengthen their borders, tackle crime, and take a firmer stance on immigration and drug smuggling into the U.S. In 2018, during his first term, Trump initiated a fierce trade war with China, targeting hundreds of billions of dollars worth of goods with reciprocal tariffs, disrupting global supply chains and slowing economic growth worldwide.
Trump has threatened to raise tariffs even further unless China takes stronger action to stop the flow of fentanyl into the U.S. “China needs to stop sending fentanyl to our country. If they don’t, tariffs will rise significantly,” Trump warned on Monday.
China has denied Trump’s claims, asserting that fentanyl abuse is primarily a U.S. issue and has pledged to bring the matter before the World Trade Organization.