Online Reporter
China on Tuesday announced tariffs ranging from 10 to 15 per cent on select goods from the United States starting February 10, marking a significant escalation in trade tensions between the two countries.
This action is a direct response to the US government’s recent decision to levy a 10 per cent tariff on Chinese products, citing concerns over Beijing’s handling of fentanyl control.
China’s Finance Ministry has announced countermeasures, including a 15 percent levy on US coal and liquefied natural gas (LNG) and a 10 per cent tariff on crude oil, farm equipment, and certain automobiles.
These tariffs will come into force on February 10. In addition to the tariffs, China has also introduced a set of export controls on crucial minerals and launched an anti-monopoly probe targeting US tech giant Google.
China’s Commerce Ministry and Customs Administration, had also earlier said that it would file a suit with the World Trade Organisation and take actions to “safeguard its rights and interest”.
Earlier Monday, President Donald Trump agreed to delay the imposition of a 25 per cent tariff on goods from Canada and Mexico for 30 days, easing the possibility of a trade war with the two neighbouring countries.
“Tariffs for us, nobody can compete with us because we’re the pot of gold . . . But if we don’t keep winning and keep doing well, we won’t be the pot of gold,” Trump said on Monday afternoon.
Trump has acknowledged that higher tariffs could increase costs for US consumers but defended them as necessary to curb illegal immigration, combat drug trafficking, and support domestic industries.
The temporary tariff reprieve for Mexico and Canada was welcomed by financial markets. Both countries agreed to step up border enforcement, with Mexico deploying 10,000 National Guard troops to curb illegal migration and drug trafficking. Canada, in turn, pledged new border security measures and initiatives to combat organised crime, money laundering, and fentanyl smuggling. — Business Standard
