China’s latest round of retaliatory tariffs on U.S. goods is set to take effect on Monday, February 10, as tensions between the world’s two largest economies continue to escalate. The move follows Washington’s decision to impose 10% tariffs on all Chinese imports, which came into force earlier this month.
In response, Beijing announced its countermeasures on February 4, just minutes after the new U.S. tariffs were implemented. The latest Chinese tariffs will see a 15% border tax on American coal and liquefied natural gas (LNG), while crude oil, agricultural machinery, and large-engine vehicles from the U.S. will face a 10% tariff.
Growing Economic Hostilities
The trade war, which began under U.S. President Donald Trump’s administration, has already strained relations between the two economic superpowers. However, the U.S. leader hinted at expanding trade penalties beyond China, suggesting a broader effort to reshape America’s global trade policies.
Speaking at the White House during a meeting with Japanese Prime Minister Shigeru Ishiba on Friday, Trump revealed that his administration was preparing new “reciprocal tariffs” on other trading partners.
“I’ll be announcing that next week—reciprocal trade—so that we’re treated evenly with other countries,” Trump said. He did not specify which nations would be affected but suggested the measures could address the U.S. budget deficit.
The president also reiterated his stance on European trade, criticizing the EU’s tariffs on American car imports, which he claims are unfairly high compared to U.S. duties on European vehicles. Trump previously warned that tariffs on EU goods could be imposed “pretty soon”, although he suggested the U.K. could be exempt if a trade deal is reached.
China’s Countermoves Beyond Tariffs
China has not only responded with import taxes but has also tightened economic pressure on American businesses. Last week, Chinese regulators launched an anti-monopoly investigation into U.S. tech giant Google, while PVH Corp.—the American company behind Calvin Klein and Tommy Hilfiger—was placed on Beijing’s “unreliable entity” list.
Adding to trade tensions, China also imposed export controls on 25 rare metals, crucial for manufacturing electronics and military equipment. The restrictions could significantly impact U.S. technology and defense industries, as China remains the world’s leading supplier of many of these key resources.
What’s Next?
As China’s new tariffs take effect, all eyes are on Washington to see whether Trump will follow through with his latest trade threats. If the U.S. imposes additional levies, the trade war could intensify, potentially affecting global markets and economic stability.
While both nations have expressed willingness to negotiate, no immediate resolution appears to be in sight, leaving businesses and investors bracing for further economic uncertainty.
