China has announced retaliatory action as US President Donald Trump’s new tariffs take effect
The Chinese levies target US imports, including coal, large-engined cars and liquified natural gas
Beijing’s anti-monopoly watchdog has also launched an investigation into Google
Trump’s 10% tariffs on China came into effect, while proposed 25% tariffs on Canada and Mexico were paused for a month
Trump’s election campaign included a threat to hit China with 60% levies, citing fentanyl flows into the US as a reason
But even the lower rate could hurt America’s third largest trading partner, which is still subject to tariffs from Trump’s first term
China is already struggling with slow economic growth and has become increasingly reliant on exports
Reacting to the latest tariffs, Beijing said it will impose retaliatory tariffs on a raft of US products.
The counter measures include a 15% tax on coal and liquefied natural gas imports from the US.
Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.
The announcement came shortly after Donald Trump’s new 10% tariffs on China came into effect.
Donald Trump is a self-professed fan of tariffs. In his own words: “the most beautiful word in the dictionary”.
He sees them as a way to bring jobs back to the US, raise tax revenue and fix problems with America’s borders.
Trump also believes trading partners, including Western allies, have taken advantage of the US and sees tariffs as a way to get back at them. He has often accused China of unfair trade practices.
But this time the US President says he is using tariffs not just for economic reasons. He says he wants to end the “scourge of fentanyl”, a powerful opioid that kills tens of thousands of Americans each year. His administration says chemicals used to make the drug come from China, while Mexican gangs supply it illegally and have fentanyl labs in Canada.
