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Monday, Jul 07, 2025

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China Implements Tit-for-Tat Tariffs on US Goods Amid Trade Escalation

New Chinese tariffs on select American imports take effect on Monday following US levies on Chinese products, intensifying trade measures between the two nations.
China has implemented new tariffs on a range of American goods as part of its response to recent US trade measures.

The new tariffs took effect on Monday, following an announcement by Beijing on 4 February, just minutes after the United States imposed a ten percent levy on all Chinese products.

Under the new regime, China has imposed a fifteen percent border tax on imports of US coal and liquefied natural gas products, and a ten percent tariff on American crude oil, agricultural machinery and large-engine cars.

These measures come as US President Donald Trump announced plans to impose a twenty-five percent tariff on all steel and aluminium imports into the United States, along with reciprocal tariffs on other nations, details of which have not been specified.

In other related actions, Chinese authorities recently launched an anti-monopoly investigation into technology company Google and added US firm PVH, owner of the Calvin Klein and Tommy Hilfiger brands, to its "unreliable entity" list.

China has also imposed export controls on twenty-five rare metals that are used in electrical products and military equipment.

During his first term, President Trump imposed a twenty-five percent tariff on steel and a ten percent tariff on aluminium, later granting duty-free quotas to trading partners including Canada, Mexico and Brazil.

In recent comments, President Trump reiterated plans for reciprocal tariffs and noted that US import taxes on vehicles remain under consideration, while he highlighted higher European Union tariffs on American car imports.

Following the implementation of US tariffs, Beijing accused Washington of making "unfounded and false allegations" regarding its role in the trade of the synthetic opioid fentanyl.

China has lodged a complaint with the World Trade Organization, stating that the US tariffs are "discriminatory and protectionist" and violate trade rules.

Experts have indicated that securing a favourable ruling for China may be challenging due to current issues with the WTO dispute resolution panel.

President Trump had been expected to hold discussions with Chinese President Xi Jinping, but has stated that he is not in a hurry to engage.

Scott Kennedy, an expert in Chinese business and economics at the Center for Strategic and International Studies, remarked that "China is much better prepared than during Trump's first term," noting improvements in technology and diversification in trade and investment.

Separately, on Friday, President Trump suspended tariffs on small packages from China that took effect on 4 February until systems are established to fully and expediently process and collect tariff revenue.

This suspension led to temporary disruptions at the US Postal Service and other agencies, which initially halted and then resumed accepting packages from China.

The new tariffs and associated measures underscore the ongoing trade dispute between the United States and China, with both sides implementing policies aimed at protecting domestic industries.
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