China’s reciprocal import tariffs on select American products took effect on Monday, intensifying the trade conflict between the two largest economies in the world. This development follows US President Donald Trump’s threats to impose additional tariffs on various countries.
The announcement from Beijing was made on February 4, shortly after the implementation of new US tariffs of 10% on all Chinese goods.
On Sunday, Trump indicated that he would introduce a 25% tariff on all steel and aluminum imports into the United States, with a comprehensive announcement expected on Monday. While speaking to reporters aboard Air Force One en route to the Super Bowl, he also mentioned plans for similar tariffs on other countries, although he did not disclose which nations would be affected.
China has recently introduced new tariffs on American products, which include a 15% tax on imports of US coal and liquefied natural gas. Additionally, a 10% tariff has been placed on American crude oil, agricultural machinery, and large-engine vehicles.
Read more : Five ways China is hitting back against US tariffs
In a separate development, Chinese regulators initiated an anti-monopoly investigation into Google, while PVH, the parent company of designer labels Calvin Klein and Tommy Hilfiger, was added to China’s “unreliable entity” list. Furthermore, China has enacted export restrictions on 25 rare metals, which are essential for various electronic devices and military applications.
Over the weekend, Trump announced plans to impose a 25% tariff on steel and aluminum imports from the US, shortly after negotiating agreements with Canada and Mexico to avert similar tariffs on goods from those countries. During his first presidential term, he had already implemented 25% tariffs on steel and 10% on aluminum but later allowed several trading partners, including Canada, Mexico, and Brazil, to have duty-free quotas.
The European Union’s import tax issues were not addressed until the Biden administration took office. On Sunday, there was no indication of which countries might receive exemptions if the new tariffs are enacted in the coming days. Trump’s proposal for reciprocal tariffs aligns with his campaign promise to impose tariffs equivalent to those levied on US goods. He also mentioned that import taxes on vehicles are still under consideration, following reports of potential exemptions from universal tariffs.
Trump has consistently expressed concerns that EU tariffs on American car imports are significantly higher than those imposed by the US. Last week, he indicated to the BBC that tariffs on EU goods could be implemented “pretty soon,” although he suggested that a resolution might be possible with the UK.
