China swiftly responded to new U.S. tariffs on Chinese goods on Tuesday by imposing tariffs on U.S. imports as well, despite the fact President Trump offered Mexico and Canada a reprieve.
At 12:01 a.m. ET on Tuesday (0501 GMT), the United States implemented an additional 10% tariff on all Chinese imports.
China’s Finance Ministry announced within minutes that it would impose a 15% levy on U.S. coal and LNG, as well as a 10% levy on crude oil, farm equipment, and certain autos. The ministry said that the new tariffs on U.S. exports will commence on February 10.
Additionally, China stated that it would initiate an antimonopoly investigation into Alphabet Inc. (GOOGL.O). The “unreliable entities list” includes PVH Corp., the holding company for brands such as Calvin Klein, and U.S. biotechnology company Illumina.
In an effort to “protect national security interests,” the Commerce Ministry and Customs Administration of China have implemented export controls on tungsten, tellurium, ruthenium, molybdenum, and ruthenium-related items. China supplies most of the rare earths needed for the clean energy transition.
On Monday, Trump abruptly shelved his plan to impose 25% tariffs on Canada and Mexico, agreeing to a 30-day freeze as a condition for border and crime enforcement concessions from the two neighboring nations.
The White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week, and China did not receive any such reprieve.
