China announces counter tariffs on numerous U.S. products

China announced on Tuesday that it would retaliate against President Trump’s tariffs on Chinese goods by imposing tariffs on various U.S. imports. Additionally, it launched an antitrust investigation into Google and introduced other trade measures targeting the U.S.

Beijing stated it would enforce a 15% tariff on coal and liquefied natural gas, along with a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles imported from the U.S. These tariffs are set to take effect next Monday.

“The U.S.’s unilateral tariff hike severely breaches World Trade Organization rules,” a statement from China’s Ministry of Finance said. “Rather than resolving its own issues, it undermines normal economic and trade relations between China and the U.S.”

Furthermore, China’s State Administration for Market Regulation announced on Tuesday that it is investigating Google over alleged antitrust violations. While the statement did not reference tariffs, the timing coincided with the implementation of Mr. Trump’s 10% tariffs on Chinese goods.

Meanwhile, on Monday, Mr. Trump delayed plans to impose significant tariffs on imports from Mexico and Canada for at least a month following discussions with their leaders. Both nations pledged to enhance efforts to curb the flow of drugs and migrants into the U.S. The U.S. president also intended to speak with Chinese President Xi Jinping in the coming days.

In addition to tariffs and the antitrust probe into Google, China has announced export restrictions on several essential elements used in high-tech manufacturing. These include tungsten, tellurium, bismuth, molybdenum, and indium—many of which the U.S. Geological Survey classifies as critical minerals due to their importance to U.S. economic and national security and the vulnerability of their supply chains.

These new restrictions build upon export controls China imposed in December on key materials such as gallium, which is widely used in manufacturing.

Furthermore, China’s Commerce Ministry has added two U.S. companies to its “unreliable entities” list: PVH Group, the parent company of Calvin Klein and Tommy Hilfiger, and Illumina, a biotechnology firm with operations in China. This designation prohibits them from engaging in China-related import or export activities and restricts new investments in the country.

Meanwhile, on Saturday, President Trump signed orders imposing a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China, set to take effect at 12:01 a.m. on Tuesday.

In response, both Mexico and Canada have announced plans for retaliatory tariffs on U.S. imports, sparking concerns over a potential trade war that could hinder economic activity between the three nations.

Source: cbsnews.com