In a retaliatory move, China has slapped new duties on US imports in a rapid response to new US tariffs on Chinese goods.
This ultimately renews a trade war between the world’s top two economies as President Donald Trump sought to punish China for not halting the flow of illicit drugs.
Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
However, there was no such reprieve for China, and a White House spokesperson said that Trump would not be speaking with Chinese President Xi Jinping until later in the week.
Trump’s additional 10% tariff across all Chinese imports into the US came into effect on Tuesday, February 4, 2025, at 05:01 GMT.
Within minutes, China’s Finance Ministry said it would impose levies of 15% for US coal and Liquefied Natural Gas (LNG) and 10% for crude oil, farm equipment, large-displacement vehicles and pickup trucks from the US. The ministry disclosed that the new tariffs on US exports will start on February 10, 2025.
In its statement announcing the retaliatory tariffs, China’s finance ministry said, “The unilateral imposition of tariffs by the US seriously violates the rules of the World Trade Organization.”
“It is not only unhelpful in solving its own problems but also damages the normal economic and trade cooperation between China and the US.”
China’s finance ministry
Separately, China’s Commerce Ministry and its Customs Administration announced that the country is imposing export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items to “safeguard national security interests.”
According to the Australian National University, tungsten, tellurium, molybdenum and ruthenium are critical minerals that are essential for advanced technologies, clean energy and national security.
China controls much of the world’s supply of such rare earths that are critical for the clean energy transition.
Tungsten is among the rarest elements on earth and is used in fluorescent lamps and the aerospace industry, as well as in wear-resistant metals.
Tellerium is used in solar panels. Ruthenium is used in solar cells and in electrical contacts and chip resistors in computers. Among molybdenum’s uses is in jet engines.
Additionally, China’s commerce ministry disclosed that it is adding the US companies PVH Group and Illumina, Inc. to the Unreliable Entity List.
PVH Group is an American clothing company which owns brands including Tommy Hilfiger and Calvin Klein.
Illumina Inc, on the other hand, is a biotech company specialising in genomic sequencing, which recently partnered with Nvidia on health-related AI tech.
“The above two entities violated normal market trading principles, interrupted normal transactions with Chinese companies, adopted discriminatory measures against Chinese companies, and seriously damaged the legitimate rights and interests of Chinese companies.
“The Unreliable Entity List Working Mechanism will take corresponding measures against the above entities in accordance with relevant laws and regulations.”
China’s Commerce Ministry
Listing likely means fines and restrictions on sales and investments in China for the two companies.
China Announces Probe Into Google
China also announced a probe into Google.
While the announcement did not specifically mention any tariffs, it came moments after a deadline for the US imposing a 10% tariff on Chinese goods passed.
According to a brief statement from the State Administration for Market Regulation, China will investigate the US tech company for alleged anti-trust violations.
Google products such as its search engine are blocked in China, but it works with local partners such as advertisers in the country.
In 2011, Google abandoned its Chinese-language search engine in the mainland and transferred it to Hong Kong. By 2014, China blocked the last remaining way to access Google’s email service Gmail.
China has used antitrust regulation to target US companies in the past.
In December, Beijing announced an antitrust probe into US chip juggernaut Nvidia over suspected violations of the country’s anti-monopoly law, in a move that was widely seen as a retaliatory shot against Washington’s curbs on the Chinese chip sector.
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