BEIJING: China strikes back at Trump’s tariffs with levies on U.S. imports, the world’s two largest economies did not cut a deal to avert sweeping U.S. tariffs, which came into effect after midnight. Beijing immediately retaliated.
China swiftly retaliated Tuesday against President Donald Trump’s sweeping tariffs on Chinese imports with levies on U.S. goods, which are slated to take effect Monday. They include 15 percent tariffs on U.S. coal and liquefied natural gas (LNG), a slew of new export restrictions and an antitrust investigation into Google, according to the Chinese government.
Trump’s tariffs, which slap an additional 10 percent tax on all Chinese goods, went into effect after the United States and China did not strike a deal by 12:01 a.m. Eastern time Tuesday. China’s response further escalates trade tensions between the world’s largest economies.
China’s customs and tariff regulator announced the 15 percent tariffs on coal and LNG, as well as 10 percent levies on crude oil, agricultural machinery and some vehicles. Its Commerce Ministry announced export restrictions on materials such as tungsten, which is used in high-tech products, and sanctions on two U.S. companies.
The U.S. levies come on the heels of the White House’s decision Monday to postpone tariffs on Mexico and Canada after both countries pledged to enhance border security. Many Chinese products are already subject to tariffs, and the new measures are in addition to those fees.
Trump accused China of allowing fentanyl to be trafficked into the United States, with an executive order imposing the tariffs on Saturday.
A spokesperson for the Chinese Embassy in Washington described Beijing’s responses as “necessary countermeasures” that are “completely justified and reasonable,” while the Commerce Ministry called Trump’s tariffs “malicious in nature.”
A new trade war poses a challenge for China at a fragile moment, when its economy is struggling with stagnant growth and a spiraling property meltdown. Chinese exports, which surged to record levels in December, represent a rare bright spot.
