China has announced new retaliatory tariffs on US imports, escalating trade tensions between the two nations.
Starting Feb.10, China will impose a 15% tariff on US coal and a 10% tariff on crude oil, agricultural machinery, and large-engine cars. These tariffs are a direct response to US President Donald Trump's recent 10% tariff on Chinese imports, which took effect just hours earlier.
The Chinese government expressed its dissatisfaction, stating that the US's actions violate World Trade Organization (WTO) rules. According to CBS News, China further criticized the tariffs for harming economic cooperation between the two countries and vowed to challenge them at the WTO.
In addition to the tariffs, China has launched an antitrust investigation into Google, accusing the tech giant of violating competition laws.
Although Google's search engine is blocked in China, the timing of the investigation raised concerns, as it came just minutes after the US tariffs went into effect.
The trade conflict between China and the US is not new, as both nations have been engaged in a trade war since 2018. The latest round of tariffs is the most recent escalation, with both countries using economic measures to assert their positions.
The new tariffs are expected to negatively affect the global economy, and analysts warn that further retaliatory actions could lead to slower growth and higher inflation.
China has also announced export controls on several critical minerals, including tungsten and tellurium, which are vital to high-tech industries worldwide.
This is in addition to previous export restrictions placed on elements like gallium, which are essential for the production of modern electronics.
As part of its measures, China has placed two US companies, PVH Group and Illumina, on its unreliable entities list, USA Today .
This designation could hinder these companies' ability to operate in China, further complicating the already tense trade environment.
The situation is evolving, with potential ramifications for both countries' economies and global trade dynamics. In response to Trump's actions, China's foreign ministry emphasized its willingness to negotiate, while still leaving the door open for more countermeasures in the future.
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