Hong KongChina announced a number of steps, including its own tariffs of 10% to 15% on certain U.S. items, in prompt retaliation Tuesday as a 10% U.S. duty on Chinese goods went into force.
According to the government, China will begin enforcing a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks on February 10 and a 15% tax on coal and liquefied natural gas on February 10.
The Chinese declaration was made just minutes after the U.S. tax, which was the only one to proceed after President Donald Trump halted 25% tariffs he had set on imports from Canada and Mexico, went into effect at 12:01 a.m. ET.
A trade war between the two largest economies in the world might spin out of control if tit-for-tat tariffs with China are not prevented.
“The Customs Tariff Commission of the State Council, China’s Cabinet, said in a statement that this unilateral tariff hike by the U.S. side seriously violates World Trade Organization rules, does nothing to solve its own problems, and undermines normal China U.S. economic and trade cooperation.”
Beijing also imposed export restrictions on products containing tungsten and other rare earth metals, as well as an inquiry into Google for suspected anti-trust crimes.
Additionally, it stated that PVH Corp., the owner of Calvin Klein and Tommy Hilfiger, and the U.S. genome sequencing corporation Illumina will be placed on the list of unreliable entities, which would limit their capacity to conduct business in China.
Citing border security and the illegal international flow of drugs like fentanyl, Trump proposed a 10% duty on China on Saturday in addition to 25% tariffs on products imported from Canada and Mexico. No similar agreement seems to have been reached with China, despite the fact that the tariffs on Canada and Mexico have been suspended for 30 days following discussions with their presidents.
White House Press Secretary Karoline Leavitt stated Monday that Trump is scheduled to meet with Chinese leader Xi Jinping in the coming days.
The Mainland For the Lunar New Year holiday, Chinese marketplaces are still closed. The news that the tariffs between Canada and Mexico had been suspended caused other Asia-Pacific markets to rise earlier Tuesday, according to CNBC.
In order to protect its rightful rights and interests, Beijing claimed to have referred the U.S. tariff measures to the World Trade Organization.
According to a spokesman for the Chinese Ministry of Commerce, the additional U.S. tariff is an atrocious conduct that represents classic unilateralism and trade protectionism, and it violates WTO regulations.
Since Trump’s first term, the United States has prevented the World commerce Organization from appointing appellate judges, which has largely prevented it from mediating conflicts involving international commerce. However, China may still use a lawsuit to rally support from other countries in opposition to the U.S. tariffs.
The U.S. strategy seriously affects the foundation of Sino-U.S. economic and trade cooperation, upends the rules-based multilateral trading system, and jeopardizes the stability of global supply chains and industry, according to China’s commerce ministry.