China Imposes Tariffs on US Goods as Trade War with Trump Begins

China has announced a fresh wave of tariffs on US goods, marking the beginning of a renewed trade war under President Donald Trump’s new administration. The measures include an investigation into US tech giant Google and export controls on rare earth metals crucial to global industries.

China’s Retaliatory Tariffs

On Tuesday, Beijing imposed 15% tariffs on coal and liquefied natural gas, while oil and agricultural equipment from the US will now face a 10% levy. The new tariffs will take effect on Monday, a direct response to Trump’s recent 10% tariff on Chinese imports, which China has condemned as a “serious violation” of international trade rules.

These actions echo the previous trade conflict between the two economic superpowers, which began during Trump’s first term. That trade war disrupted global supply chains and weakened economies worldwide. Experts predict that the latest escalation could lead to further retaliatory measures.

Rare Earth Export Controls and Google Investigation

China has also moved to tighten its grip on critical minerals by implementing export controls on tungsten, tellurium, ruthenium, molybdenum, and ruthenium-related products. These rare earth elements are essential in manufacturing high-tech electronics and renewable energy technologies, sectors where the US heavily relies on Chinese supply chains.

In addition to economic countermeasures, Beijing has launched an antitrust investigation into Google, signaling further tensions in the US-China technology rivalry. The announcement caused fluctuations in financial markets, with Hong Kong stocks declining, the Chinese yuan falling, and the US dollar strengthening.

Diplomatic and Economic Consequences

China’s latest response follows Trump’s pledge to discuss trade issues with President Xi Jinping. However, Beijing had urged the US to reconsider imposing tariffs on over $400 billion worth of goods and warned of “countermeasures” if Trump proceeded with the move.

A spokesperson for the Chinese embassy reiterated that “there is no winner in a trade war,” emphasizing that economic conflicts harm both sides and disrupt global markets. In 2020, China had agreed to a trade deal aimed at resolving previous disputes, committing to purchasing $200 billion in US goods annually, but the COVID-19 pandemic derailed those plans.

Trump’s Trade Policy Expands to Europe

Beyond China, Trump hinted at new tariffs targeting the European Union, though no timeline was provided. European Commission President Ursula von der Leyen responded by stressing the EU’s readiness for negotiations but also its determination to protect its economic interests.

As tensions escalate, the global economy braces for potential disruptions, with businesses and policymakers closely monitoring the next moves in this unfolding trade conflict.