China retaliated immediately on Tuesday by imposing a 10% to 15% tariff on some U.S. products in response to the U.S. enacting a 10% tariff on all Chinese goods. The tariffs from China, effective February 10, will target items like coal, liquefied natural gas, crude oil, agricultural machinery, automobiles, and pickup trucks. This move increases the risk of a trade war between the two biggest economies in the world.
In addition to the tariffs, China announced an investigation into Google for anti-trust violations, export controls on rare earth elements, and restrictions on U.S. companies Illumina and PVH Corp. operating in China. President Trump also imposed 25% tariffs on goods from Canada and Mexico, which have been paused for 30 days, but no such deal has been reached with China.
The U.S. and China have engaged in a back-and-forth of tariffs since Trump’s first term, with China now taking their concerns to the World Trade Organization. This move has been criticized by China as violating international trade rules and being detrimental to economic cooperation between the two countries. The U.S.’ actions have also been seen as damaging the global trading system and disrupting industrial and supply chains.
Amidst the trade tensions, discussions between President Trump and Chinese leader Xi Jinping are expected in the coming days. The impact of these tariffs on the global economy remains uncertain as both countries navigate the consequences of their trade actions.
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