China's Strategic Response to US Tariffs: Five Key Measures

Thu Mar 13 2025 21:36:15 GMT+0200 (Eastern European Standard Time)
China's Strategic Response to US Tariffs: Five Key Measures

In response to ongoing US tariffs, China unveils a series of countermeasures impacting specific American goods and sectors.


As tensions rise in the US-China trade war, Beijing has implemented retaliatory measures targeting key American imports, ranging from energy resources to high-demand agricultural products. These responses go beyond mere tariffs, aiming to address broader economic implications while sending a potent message to Washington.

The article text follows:

The trade conflict between the US and China, the two leading global economies, has intensified as China responds to the US-imposed tariffs with several strategic countermeasures. Following President Donald Trump's initiation of a 10% tariff on all imports from China, Beijing has launched retaliatory actions aimed at specific American goods.

Key among these measures is the introduction of tariffs on critical fossil fuel imports. China has imposed a 10% tax on US coal and liquefied natural gas (LNG), along with a 15% tariff on crude oil. While China is the world's largest coal importer, it primarily sources its needs from Indonesia and other countries like Russia and Australia, reducing its reliance on US fossil fuels. Hence, the economic impact of these tariffs on China may be minimal due to diversified supply chains.

In the agricultural and automotive sectors, China has also implemented a 10% tariff on US agricultural machinery, pick-up trucks, and larger vehicles. However, the overall volume of these imports from the US is relatively low. China's enhanced investment in domestic agricultural machinery aims to boost local production and food security, previously linked to reliance on US imports.

Alongside tariffs, China has launched non-tariff measures, including an anti-monopoly investigation into Google, whose services have been blocked in China for over a decade. This move indicates a broader scrutiny of US tech companies, despite the fact that Google's revenue in China is just a minuscule portion of its overall sales.

Furthermore, US brand Calvin Klein, owned by PVH, has been added to China's "unreliable entity" list for purportedly discriminatory practices against Chinese businesses. This action could complicate operations for PVH in China, potentially leading to sanctions and operational investigations, mirroring the US's own restrictive measures on certain entities.

In a strategic twist, China has also tightened control over the export of 25 rare metals, crucial components for various industries, including technology and defense. Notably, the metals targeted for export controls are vital to many US companies, but China refrained from including critical imports from the US that are essential for high-tech manufacturing.

These carefully calibrated measures come amid ongoing discussions between the leaders of both nations. Although President Trump has expressed interest in negotiating with President Xi Jinping, the economic ramifications of these tariffs and countermeasures continue to unfold, prompting both countries to navigate a complex and shifting trade landscape.

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