The ongoing trade war between the world’s two largest economies has intensified, with US President Donald Trump threatening to impose additional tariffs on multiple countries, while China has announced new import taxes on American goods.
Beijing declared on February 4 that it would impose tariffs on select US products, a move that came just minutes after Washington introduced a 10 percent additional tax on all Chinese imports.
The Chinese tariffs, set to take effect from February 9, will include a 15 percent duty on American coal and liquefied natural gas (LNG) and a 10 percent tax on crude oil, agricultural machinery, and large-engine cars.
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On Sunday, President Trump escalated trade measures by imposing a 25 percent tariff on all steel and aluminum imports into the US.
Speaking to reporters, Trump indicated his plan to implement reciprocal taxes on other countries but did not specify which nations would be affected.
US Tightens Tariff Policies
The US administration has recently begun enforcing a 10 percent tariff on all goods from China, reversing a previous exemption on products valued at $800 or less. This decision was largely driven by concerns that Chinese e-commerce companies such as Shein and Temu were exploiting the ‘de minimis’ rule to ship products directly to American consumers without duties.
Trump justified the move by stating that all goods from China, regardless of value, would now be taxed. However, this policy shift has faced criticism from various stakeholders, citing potential price hikes for American consumers and businesses.
China Responds with Retaliatory Measures
In response, China has taken a firm stance against US trade policies. Aside from imposing tariffs on American commodities, Chinese regulators have launched an anti-monopoly probe into tech giant Google. Moreover, PVH, the parent company of brands like Calvin Klein and Tommy Hilfiger, has been placed on Beijing’s ‘untrustworthy’ list.
Additionally, China has introduced export controls on 25 rare earth metals, crucial components in both electronic devices and military equipment, potentially impacting American manufacturers.
