In a significant move on Tuesday, China announced the imposition of tariffs on several US products alongside an antitrust investigation targeting Google. These decisions coincide with the implementation of US President Donald Trump’s 10% tariffs on Chinese goods, which began on the same day.
The Chinese Ministry of Commerce (MOFCOM) revealed that it would enact a 15% tariff on coal and liquefied natural gas (LNG), while a 10% tariff will apply to crude oil, agricultural machinery, and large-displacement vehicles. The ministry emphasized that the United States’ unilateral tariff hike “seriously violates the rules of the World Trade Organisation” and is detrimental to the economic cooperation between the two nations.
Impact of the trade measures
The tariffs instituted by Trump are part of his administration’s efforts to address trade imbalances. Despite these tensions, Trump indicated plans to engage in discussions with Chinese President Xi Jinping in the near future. This dialogue could be seen as a potential avenue for negotiating a resolution to the escalating trade conflict.
Furthermore, shortly after Trump’s announcement of a pause on tariffs against Mexico and Canada for 30 days due to their commitment to enhance border security, China reiterated its stance. The Chinese government expressed its readiness to take “necessary countermeasures to defend its legitimate rights and interests” in light of the tariffs imposed on China that were justified by allegations of insufficient action against fentanyl precursor chemicals.
Antitrust investigation into Google
In a separate development, the State Administration for Market Regulation in China announced that it is launching an investigation into Google, suspecting the company of violating antitrust laws. This investigation is reflective of China’s ongoing scrutiny of foreign tech companies and aims to ensure fair competition within its market.
“The US’ unilateral tariff increase seriously violates the rules of the World Trade Organisation,” the ministry’s statement said.
The countermeasures from China are scheduled to take effect on February 10, marking a new chapter in the ongoing trade disputes between the two global powers. As tensions rise, the international community watches closely to see how these developments unfold in the coming weeks.