Trade War Escalation, China Launches More Aggressive Tarif to Counterattack

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According to Yahoo Finance, Beijing has launched a more aggressive counterattack against U.S. tariff policies, announcing a series of measures beyond imposing tariffs. This marks a new chapter in the trade tensions between the two largest economic powers in the world.

In a statement released by China’s Ministry of Finance, Beijing announced that it would impose higher tariffs than the U.S. – 15% on coal and liquefied natural gas and 10% on crude oil, agricultural machinery, and large-engine vehicles from the U.S. These measures will take effect next week.

“The unilateral action by the U.S. to raise tariffs clearly violates the principles of the World Trade Organization (WTO),” stated a spokesperson for the Ministry of Finance. “This policy not only fails to address the issues but actually undermines the foundation of economic and trade cooperation that has been built between the two countries.”

However, China did not stop at tariffs. In a coordinated move, Chinese market regulators announced an investigation into Google’s alleged monopoly practices. At the same time, Beijing tightened controls on exports of strategic minerals, including tungsten, tellurium, bismuth, molybdenum, and indium—crucial raw materials for the U.S. high-tech industry.

In a recent development, two U.S. companies – PVH Group (owner of the Calvin Klein and Tommy Hilfiger brands) and biotechnology firm Illumina – were added to China’s trade blacklist. This decision effectively freezes both companies’ operations in China and bans new investments in the country.

As tensions rise, President Trump is scheduled to meet with President Xi Jinping soon. This meeting is anticipated as a crucial moment that could determine the future direction of trade relations between the two countries.

This trade conflict comes amid the imposition of U.S. tariffs on Canada and Mexico, although Trump has agreed to suspend tariff threats for 30 days against both countries, in line with their commitments to addressing border security and drug trade issues.

Source:

• Yahoo Finance. China counters with tariffs on US products. It will also investigate Google. Accessed February 4th, 2025.
• Ministry of Finance Of The People’s Republic Of China. 国务院关税税则委员会关于对原产于美国的部分进口商品加征关税的公告. Accessed February 4th, 2025