In a decisive move responding to US tariffs, China has announced new tariffs on various American imports, significantly impacting coal and liquefied natural gas. The latest measures, which will take effect next Monday, include a 15% tax on coal and liquefied natural gas, alongside a 10% tariff on crude oil, agricultural machinery, pickup trucks, and large-engine vehicles. China’s actions come after President Donald Trump implemented a 10% tax on a wide range of Chinese imports, framed as part of efforts to address trade deficits and combat the flow of opioids, specifically fentanyl, manufactured in China.
China Hits Back at US with New Tariffs on Coal and Gas Imports
China Hits Back at US with New Tariffs on Coal and Gas Imports
China retaliates against US tariffs with significant taxes on American coal and gas imports, escalating trade tensions.
The Chinese government has officially lodged complaints with the World Trade Organization (WTO), asserting that the US has violated international trade rules. In its response, China deemed the US tariffs "unhelpful" and detrimental to the established economic relations between the two nations. Previous accusations from China suggest that the US’s opioid crisis is a domestic issue rather than one to be blamed on Chinese exports.
In addition to the tariffs on coal and gas, Beijing is broadening its measures by expanding its blacklist of “unreliable entities” to include US companies like PHV Corp, which owns Calvin Klein and Tommy Hilfiger, as well as Illumina, a biotechnology firm. The blacklisted companies are accused of adopting discriminatory practices against Chinese businesses and could face penalties ranging from fines to restrictions on employee work visas.
China is also poised to limit the export of 25 critical minerals essential for various industries, including aerospace and solar panel manufacturing. This includes tungsten, tellurium, and molybdenum which are integral to modern technology. Meanwhile, the antitrust scrutiny of Google by a Chinese watchdog highlights growing tensions, although the company’s search services remain blocked in the country since 2010.
Both the US and China have previously engaged in a tit-for-tat exchange of tariffs totaling hundreds of billions, igniting an ongoing trade war. While Trump has suspended a planned 25% tariff on imports from Mexico and Canada for 30 days, uncertainty looms over whether these neighbors will face renewed tariffs after the deadline. The ambiguity surrounding trade relationships may influence American businesses to delay investments or hiring decisions as they await clarity on ongoing negotiations.
In addition to the tariffs on coal and gas, Beijing is broadening its measures by expanding its blacklist of “unreliable entities” to include US companies like PHV Corp, which owns Calvin Klein and Tommy Hilfiger, as well as Illumina, a biotechnology firm. The blacklisted companies are accused of adopting discriminatory practices against Chinese businesses and could face penalties ranging from fines to restrictions on employee work visas.
China is also poised to limit the export of 25 critical minerals essential for various industries, including aerospace and solar panel manufacturing. This includes tungsten, tellurium, and molybdenum which are integral to modern technology. Meanwhile, the antitrust scrutiny of Google by a Chinese watchdog highlights growing tensions, although the company’s search services remain blocked in the country since 2010.
Both the US and China have previously engaged in a tit-for-tat exchange of tariffs totaling hundreds of billions, igniting an ongoing trade war. While Trump has suspended a planned 25% tariff on imports from Mexico and Canada for 30 days, uncertainty looms over whether these neighbors will face renewed tariffs after the deadline. The ambiguity surrounding trade relationships may influence American businesses to delay investments or hiring decisions as they await clarity on ongoing negotiations.
