China on Tuesday slapped tariffs on U.S. imports in a swift response to new U.S. duties on Chinese goods, renewing a trade war between the world's top two economies as President Donald Trump sought to punish China for not halting the flow of illicit drugs.
Trump's additional 10% tariff across all Chinese imports into the U.S. came into effect at 12:01 a.m. on Tuesday.
Within minutes, China's Finance Ministry said it would impose levies of 15% for U.S. coal and LNG and 10% for crude oil, farm equipment and some autos. The new tariffs on U.S. exports will start on Feb 10, the ministry said.
China also said it was starting an anti-monopoly investigation in Alphabet Inc's Google, while including both PVH Corp, the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina on its "unreliable entities list".
Separately, China's Commerce Ministry and its Customs Administration said it is imposing export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items to "safeguard national security interests". China controls much of the world's supply of such rare earths that are critical for the clean energy transition.
Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
But there was no such reprieve for China, and a White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week.
During his first term in 2018, Trump initiated a brutal two-year trade war with China over its massive U.S. trade surplus, with tit-for-tat tariffs on hundreds of billions of dollars worth of goods upending global supply chains and damaging the world economy.
To end that trade war, China agreed in 2020 to spend an extra $200 billion a year on U.S. goods but the plan was derailed by the COVID pandemic and its annual trade deficit had widened to $361 billion, according to Chinese customs data released last month.
"The trade war is in the early stages, so the likelihood of further tariffs is high," Oxford Economics said in a note as it downgraded its China economic growth forecast.
Trump warned he might increase tariffs on China further unless Beijing stemmed the flow of fentanyl, a deadly opioid, into the United States.
"China hopefully is going to stop sending us fentanyl, and if they're not, the tariffs are going to go substantially higher," he said on Monday.
China has called fentanyl America's problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open for talks.
Stocks in Hong Kong pared gains after China's retaliation.
“Unlike Canada and Mexico, it is clearly harder for the U.S. and China to agree on what Trump demands economically and politically. The previous market optimism on a quick deal still looks uncertain," said Gary Ng, senior economist at Natixis in Hong Kong.
"Even if the two countries can agree on some issues, it is possible to see tariffs being used as a recurrent tool, which can be a key source of market volatility this year."
© Thomson Reuters 2025.
20 Comments
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John-San
Trump will cave in like with 25% tariffs. For a bloke who loves Tariffs it seems like it a love hate relationship he got going because nothing else is working out for him LOL. How that War with Russia going?that right Trump sent more missiles. lol great way to end a war in 24 hour. He must mean 24 months lol. How that cost cutting going that right the federal judge told him he can’t do it with the law being changed. How the fentanyl imports going ? He won’t do nothing about the 200 billion of coke being imported because if that stop the financial sector, entertainment sector and the business sector would come to sudden halt overnight. It seem the USA needs it coke but not the fentanyl lol
Tokyo Guy
MAGA: "They'll cave soon, there's more of us than them!"
Bystander: "Actually their population is around four times ours"
MAGA: "Ooh, fancy-pants educated person thinks he knows things!"
Fos
Washington is inciting anti-China sentiments by any means and play dishonestly.
It would be great if all these countries who have threatened would respond appropriately just like China did.
The problem is the US refuses to change and accept the fact that it’s no longer the sole hegemon.
Asia welcomes China because China is part of Asia, unlike the United States of America
Volsi
Good job China!
Jay
Ah here we go - the CCP throwing another tantrum because the someone won't let them flood the world with cheap knockoffs, slave labor goods, and, oh yeah, DEADLY ILLICIT DRUGS.
China's economy is already circling the drain, propped up by ghost cities, fake GDP numbers, and government propaganda, but sure, slapping tariffs on U.S. goods will totally show them!
Meanwhile, Xi's fan club in the West will keep defending a regime that censors its own people, locks up dissidents, and unleashes pandemics on the world. Enjoy your lead-filled exports and social credit scores, CCP bootlickers!
kokajp
Way to go!
Fos
Jay
That's a great script :) That would a perfect text for next "Fantasy world" series, or a good manual on "how to fabricate the best US military transcripts for propaganda purposes". I did not read it after the second line cause if was already good enough :)
EvilBuddha
The US liberals (many of whom secretly admire China) will soon come here to cheer for China because of their hatred of Trump.
The fact is that China’s economy depends on exports more than the US economy. Tariffs might cause some pain to American consumers (and that too only if US importers are unable to find any alternate sources of imports) but it is a small price to pay for making China fall in line. And yeah, China can retaliate with tariffs of its own but I am sure there are other countries which will be eager to import American oil, coal, farm equipment and autos to reduce their own trade surplus with the US.
The fun is just beginning.
ok1517
So, Donald is receiving the return-ticket again!
Sorry, not Donald, he and Elonia got it made already.
How about Mr. and Mrs. Miller, the Smith family. and so many others.
Those who voted for him actually don't deserve any better!!
u_s__reamer
This tariff furor is all about MAGAtheatrics, a stage for the felon to play his "Fuehrer for a day" shtick. All sound and fury, signifying nothing, innit?
Laguna
Where they're demand, there will always be supply. The US should look in its own backyard.
isabelle
How many times have you copy-pasted this now? Thirty? Forty?
I'll return the favor yet again:
...
What utterly ridiculous logic.
Does Asia welcome North Korea because it is in Asia? Did China welcome Imperial Japan because it was in Asia? Laughable.
Jay
Yeah awesome, let's ignore the facts, call everything "Western propaganda," and then proudly admit we don't even read past no second lines. Also Tiananmen Square was just a peaceful gathering and the Great Firewall is there to "protect" people!
Peter14
The US is primary, that has not changed yet, but with the idiot felon in charge of America it may actually change.
Asia despises China because it wants power over everyone else in Asia.
TaiwanIsNotChina
Asia fears China and that is the starting point of any conversation.
TaiwanIsNotChina
I have yet to see a single Democratic congressperson not take a tough line on China. You don't see Democrats speculating about whether they would defend Taiwan.
Lindsay
You didn’t have to be a genius to see that coming.
ian
If tariff is passed on to consumers then it's like levying additional tax to consumers whenever they buy the tariffed products.
US consumers will probably be more affected because US imports a lot more than China.
The govt would earn more however
Fos
Another desperate attempt of 'some Americans' fixated with the anti-Beijing hysteria, worried their investments in Asia will turn into bad choices :)
For a start forget the warmongering in the Asian continent?
That would be the starting point of any conversation.
Fos
Jay
Sure, and since we are in these campaigns for "the global truth on AI why don't we ask ChatGPT how many billions of dollars the US administration provided for the mass killings in Gaza in the last year? Or the role of Blackrock in Kyev buying up Ukrainian assets? The usual double standards and sheer hypocrisy Made in America.