China responded to U.S. tariffs on Chinese goods by announcing retaliatory measures, sparking concerns of a potential trade war between the two largest economies. The Chinese Finance Ministry revealed plans to impose additional tariffs on various U.S. imports, including coal, liquefied natural gas, crude oil, agricultural machinery, and certain cars, starting on February 10.
China criticized the U.S. for violating World Trade Organization rules and disrupting normal trade activities. Additionally, Chinese officials announced export controls on critical minerals and related technologies. Despite these actions, experts believe that the current tariffs are more symbolic and may not significantly impact trade immediately.
The Chinese yuan remained stable against the U.S. dollar following the announcements, with mainland markets set to reopen after the Lunar New Year holiday. China also initiated an investigation into Google for potential violations of the country’s anti-monopoly law. Analysts suggest that China’s tariffs could be subject to change before taking effect, and the Google investigation may not result in penalties.
While President Trump agreed to delay tariffs on imports from Canada and Mexico, China did not receive a similar reprieve. The ongoing trade tensions between the U.S. and China are expected to continue, with potential further tariff actions looming. Economists predict that the tariffs could impact China’s GDP growth and call for domestic stimulus measures to counter the effects.
As Trump enters his second term, an investigation into Beijing’s compliance with a trade deal from his first term is underway. The assessment’s results are expected by April 1, potentially leading to more tariff actions. Trump recently signed an order imposing 10% tariffs on China, adding to existing tariffs from his first term. These actions are projected to slow China’s GDP growth and consumer inflation due to weakened demand and a real estate crisis.
