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Home » U.S.-China trade tensions escalate as Beijing announces fresh tariffs
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U.S.-China trade tensions escalate as Beijing announces fresh tariffs

Published: February 5, 2025
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China has announced retaliatory economic measures against the United States following the implementation of 10% tariffs on Chinese imports by the administration of U.S. President Donald Trump. The new Chinese tariffs, set to take effect on February 10, include a 15% duty on certain types of coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.

U.S.-China trade tensions escalate as Beijing announces fresh tariffs

In addition to the tariffs, China’s Ministry of Commerce and customs authorities introduced new export controls on over two dozen metal products and related technologies. Among the restricted materials are tungsten, a key industrial and defense mineral, and tellurium, which is used in solar cell production. The Ministry of Commerce further announced that two American firms, biotech company Illumina and fashion retailer PVH Group, the parent company of Calvin Klein and Tommy Hilfiger, have been added to China’s unreliable entities list, citing violations of standard market trading principles.

Simultaneously, China’s State Administration for Market Regulation initiated an antitrust investigation into Google for suspected violations. Although Google’s search engine is unavailable in China, the move signals Beijing’s broader response to Washington’s escalating trade actions. The measures were unveiled as the U.S. tariffs covering more than $450 billion in Chinese goods went into effect.

Economic analysts suggest that Beijing’s countermeasures are calibrated to send a political message while minimizing economic damage. According to Julian Evans-Pritchard of Capital Economics, the newly imposed tariffs target approximately $20 billion worth of U.S. imports, representing around 12% of the total annual trade volume between the two countries. This is significantly lower than the scale of Washington’s tariffs on Chinese goods.

Beijing has also taken steps on the diplomatic front, filing a formal complaint with the World Trade Organization (WTO). In a statement, China’s Ministry of Commerce accused the U.S. of undermining the multilateral trading system, destabilizing global supply chains, and violating the principles of economic cooperation. Chinese officials vowed to pursue additional countermeasures if necessary. The retaliatory measures come amid broader geopolitical tensions between Washington and Beijing, with trade imbalances, technology disputes, and concerns over fentanyl exports factoring into the strained relationship.

Trump linked the tariffs to China’s alleged role in supplying precursor chemicals for fentanyl production, a claim Beijing has consistently denied. The White House had also recently announced tariffs on Mexican and Canadian imports, though those were paused following negotiations with their respective leaders. While Beijing’s response signals its willingness to push back against Washington, it has also left room for potential trade negotiations. Trump, who had earlier threatened tariffs of up to 60% on Chinese goods, suggested that he may speak with Chinese President Xi Jinping in the coming days. – By MENA Newswire News Desk.

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