China swiftly responded to President Trump’s 10% tariff on Chinese products by announcing retaliatory measures targeting American companies and imports of critical products. The tariffs, which went into effect Tuesday morning, include restrictions on the export of certain minerals used in high-tech products.
The move came as a surprise, but China had hinted at potential countermeasures after Mr. Trump announced the tariffs over the weekend. Beijing also launched an antitrust investigation into Google, citing “national security and interests.”
China’s actions were seen as an effort to hurt American businesses and send a warning to the Trump administration. The measures could take time to implement, but they suggest China is willing to escalate trade tensions.
“This is likely only the beginning of a long process for the two countries to negotiate,” said Ziwei Zhang, president and chief economist at Pinpoint Asset Management. “There is hope to de-escalate in this process, though the road ahead may be bumpy.”
The Trump administration’s tariffs have sparked criticism from China, which claims they undermine global trade cooperation and disrupt industry supply chains.
China’s countermeasures also include additional tariffs on liquefied natural gas, coal, farm machinery, and other products. The country has added two American companies to its “unreliable entities” list, including PVH, the owner of Calvin Klein and Tommy Hilfiger brands.
The move comes as Mr. Trump was planning to speak with Chinese President Xi Jinping within 24 hours. It’s unclear what steps China has taken to restrict fentanyl exports, but the two countries have collaborated on law enforcement efforts in the past.
China firmly opposes tariffs and says any differences should be resolved through dialogue. The US trade war with China has been ongoing since Mr. Trump initiated a trade case in 2018, resulting in significant tensions between the two nations.
Source: https://www.nytimes.com/2025/02/04/business/economy/trump-tariffs-china.html