China strikes back with tariffs in escalating trade war

New Delhi, Feb 10: China is set to impose new import taxes on American goods starting Monday, escalating the ongoing trade war with the United States. This move follows President Donald Trump’s latest round of tariffs on Chinese products and his threats to impose similar taxes on other countries.

Beijing announced these tariffs on February 4, shortly after the U.S. enforced a 10% levy on all Chinese imports. The new Chinese taxes include a 15% duty on American coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, and large-engine cars.

Meanwhile, China has taken additional steps beyond tariffs. It launched an anti-monopoly investigation into U.S. tech giant Google and added PVH, the parent company of Calvin Klein and Tommy Hilfiger, to its “unreliable entity” list as reported by the international media. Additionally, China has restricted the export of 25 rare metals essential for electronics and military equipment.

Trump’s latest tariff plans come shortly after he reached agreements with Canada and Mexico, avoiding the broad 25% tariffs he had previously threatened on their exports. While he imposed similar steel and aluminium tariffs during his first presidency, some trading partners later received exemptions.

China has pushed back against these U.S. trade policies. It filed a complaint with the World Trade Organization (WTO), calling the tariffs “discriminatory and protectionist.” However, due to the WTO’s current limitations in resolving disputes, China may struggle to win its case.

The trade tensions extend beyond goods. The U.S. has accused China of involvement in the illegal trade of fentanyl, a synthetic opioid, further straining relations. Although Trump was expected to discuss these matters with Chinese President Xi Jinping, he stated he is in no rush for negotiations.

On Friday, Trump suspended tariffs on small packages from China after initially ending duty-free treatment for shipments under $800. The U.S. Postal Service temporarily halted shipments from China but later reversed the decision.

The escalating trade war between the U.S. and China could have significant consequences for global markets. Higher tariffs will likely increase costs for businesses and consumers in both countries, disrupt supply chains, and strain diplomatic relations. If the conflict continues without a resolution, industries dependent on international trade, such as technology, automotive, and energy, may face major challenges. While negotiations remain uncertain, both sides may eventually need to find common ground to prevent further economic instability.