China has announced new tariffs on U.S. imports and placed several American companies, including Google, under scrutiny for potential sanctions.
The measures, effective Monday, are a response to the 10% tariffs on all Chinese imports imposed by U.S. President Donald Trump, which took effect at 12:01 a.m. ET on Tuesday (0501 GMT).
China’s new tariffs include a 15% levy on U.S. coal and liquefied natural gas (LNG) and a 10% duty on crude oil, farm equipment, large-engine sedans, and some trucks. Beijing also launched an anti-monopoly investigation into Alphabet’s Google and placed PVH Corp and biotechnology company Illumina on a list for possible sanctions.
The Chinese measures apply to an estimated $20 billion in annual U.S. imports, compared to the $450 billion worth of Chinese goods affected by Trump’s tariffs. Trump’s trade adviser Peter Navarro indicated that negotiations could be possible, while White House spokeswoman Karoline Leavitt said a call between Trump and Chinese President Xi Jinping would happen soon, without providing specifics.
Trump suspended 25% tariffs on Mexico and Canada on Monday in exchange for commitments on border security and crime enforcement. Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum confirmed new measures to strengthen enforcement, securing a 30-day reprieve.
China also announced export controls on certain metals, including tungsten, which are used in electronics, military equipment, and solar panels. A 10% tariff on U.S.-made electric trucks could impact Tesla’s Cybertruck, though Tesla has not responded to the announcement.
While China’s new tariffs are set to take effect next week, Beijing has signaled an interest in talks to prevent a broader trade war. During Trump’s first term, the U.S.-China trade conflict disrupted global supply chains and affected economic growth. Trump has warned that additional tariffs may be imposed unless China takes action to curb fentanyl shipments to the United States.
China has stated that fentanyl is a domestic U.S. issue and has threatened to challenge the new tariffs at the World Trade Organization.
Meanwhile, EU officials have called for early discussions with the United States to prevent trade tensions from escalating. EU trade chief Maros Sefcovic emphasized the need for constructive dialogue to resolve the dispute.
