Retaliatory Chinese tariffs on a range of U.S. products took effect Monday, hours after U.S. President Donald Trump announced plans to impose new duties on all steel and aluminum imports into the United States. The Chinese tariffs, ranging from 10% to 15%, target U.S. exports including crude oil, liquefied natural gas, farm machinery, and other key products.
The move was Beijing’s response to the Trump administration’s recent 10% tariff on Chinese goods. U.S. officials justified their action as part of a broader strategy to pressure China into addressing the flow of fentanyl—an opioid contributing to America’s drug crisis. China is a major supplier of precursor chemicals used in fentanyl production.
At a press conference in Beijing, Chinese Foreign Ministry spokesman Guo Jiakun emphasized the need for diplomacy.
“There are no winners in a trade war or a tariff war,” Guo said. “What is needed now is dialogue and consultations based on equality and mutual respect. We urge the U.S. side to stop its wrongful actions and refrain from politicizing economic and trade issues.”
However, China’s response didn’t stop with tariffs. Authorities also launched an antitrust investigation into Google, blacklisted two more U.S. companies, and imposed new export controls on rare earth metals crucial for high-tech industries.
A Strategic Warning from China
Experts view China’s response as a measured but deliberate signal. Harry Murphy Cruise, head of China economics at Moody’s Analytics, called it a “warning shot.”
“It’s China saying: We don’t want to escalate this further, but we could make it much harder for you if things deteriorate,” Cruise explained. He pointed to China’s control over rare earth metals—a key component in technology manufacturing—as a potential pressure point.
China’s current tariffs target $15 billion to $20 billion worth of American goods, compared to U.S. tariffs on roughly $450 billion of Chinese imports. Cruise noted that China’s effective tariff rate on U.S. imports remains relatively low, signaling Beijing’s intention to maintain some restraint.
Broader Implications
The renewed trade friction comes at a difficult time for both economies. China is grappling with a sluggish economy, a real estate crisis, and rising debt, while the U.S. faces inflationary risks that could complicate Trump’s tariff strategy.
Despite these concerns, President Trump remained defiant. On Sunday, he announced his plan to impose 25% tariffs on all steel and aluminum imports and hinted at more tariffs on countries including Taiwan and European nations.
“We’ve been taken advantage of for too long,” Trump said. “We’re going to protect American industry and American jobs.”
For now, the prospect of talks between Trump and Chinese President Xi Jinping remains uncertain. Although there were expectations of a phone call between the two leaders, Trump recently stated he was “in no hurry” to engage.
“The big unknown is when and if President Xi and President Trump will meet,” Cruise noted. “The risk is that this turns into a tit-for-tat situation, just like last time.”
With tensions rising between the world’s two largest economies, businesses on both sides of the Pacific are bracing for a new wave of uncertainty and disruption.
NPR
