China Imposes Retaliatory Tariffs On U.S
…As Trump Suspends Measure Against Mexico, Canada
China has imposed import tariffs on U.S. goods in response to duties levied by President Donald Trump, escalating tensions in the ongoing trade war between the world’s two largest economies.
The move came shortly after the U.S. implemented an additional 10 per cent tariff on all Chinese imports, which took effect at 12:01 a.m. ET (05:01 GMT).
Trump had also imposed 25 per cent tariffs on Mexico and Canada along with an additional 10 per cent tariff on China, accusing the three countries of not doing enough to prevent the flow of illicit drugs, particularly fentanyl, into the U.S.
In retaliation, China’s Finance Ministry on Tuesday imposed a 15 per cent tariff on U.S. coal and liquefied natural gas (LNG) and a 10 per cent levy on crude oil, agricultural equipment, and certain automobiles.
Also, China launched an antimonopoly investigation into Alphabet Inc. (the parent company of Google) and added PVH Corp., which owns Calvin Klein, along with biotechnology firm Illumina, to its “unreliable entities list.”
In addition, China’s Commerce Ministry announced new export controls on rare earth elements and critical metals essential for high-tech gadgets and clean energy technologies.
According to China, these new tariffs on U.S. goods are set to take effect on February 10, allowing for potential negotiations between the two countries.
A White House spokesperson confirmed to Reuters that President Trump plans to speak with Chinese President Xi Jinping later this week.
Trump had temporarily suspended the 25 per cent tariffs imposed on Mexico and Canada for one month after speaking with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
Both countries made commitments to reinforce their borders, combat crime and take a stronger position on issues regarding immigration and drug smuggling, especially into the U.S.
In 2018, during his first term, Trump launched a fierce trade war with China, targeting hundreds of billions of dollars in goods with tit-for-tat tariffs. This standoff disrupted global supply chains and slowed economic growth worldwide.
Trump has threatened even bigger tariffs unless China takes more decisive 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.
Beijing has refuted Trump’s allegations, saying that fentanyl abuse is primarily a U.S. problem and vowed to drag the U.S. to the World Trade Organization.
China Imposes Retaliatory Tariffs On U.S is first published on The Whistler Newspaper
