China Imposes Retaliatory Tariffs on US Goods

concept photo for China-USA trade war conflict

BEIJING — In response to President Trump’s tariffs on Chinese goods, China implemented its own tariffs on various U.S. imports on Tuesday. Simultaneously, China announced an antitrust investigation into Google and other trade actions.

These retaliatory tariffs include a 15% levy on coal and liquefied natural gas, and a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles imported from the U.S. The tariffs are set to take effect next Monday.

A Ministry of Finance statement declared the U.S.’s unilateral tariff increases a violation of World Trade Organization rules, arguing they hinder economic and trade cooperation between China and the U.S. and fail to resolve existing problems.

Furthermore, China’s State Administration for Market Regulation launched an antitrust investigation into Google, citing suspected violations of antitrust laws. The announcement, though unrelated to the tariffs, followed shortly after Trump’s 10% tariffs on China went into effect.

U.S. tariffs on goods from Canada and Mexico were also scheduled for implementation on Tuesday. However, Trump temporarily suspended the tariffs on Mexico and Canada for 30 days, following their concessions regarding border security and drug trafficking. Trump planned to speak with Chinese President Xi Jinping in the following days.

Beyond tariffs, China introduced export controls on several elements vital to high-tech manufacturing: tungsten, tellurium, bismuth, molybdenum, and indium. Many of these are categorized as critical minerals by the U.S. Geological Survey due to their importance to U.S. economic and national security and vulnerable supply chains.

These export controls build upon similar measures implemented by China in December targeting key elements like gallium.

The Commerce Ministry also added two American companies – PVH Group (owner of Calvin Klein and Tommy Hilfiger) and Illumina (a biotechnology firm) – to its “unreliable entities” list. This listing prohibits them from engaging in China-related import/export activities and new investments in the country.

—Wu reported from Bangkok.