China has hit back at the US trade offensive, slapping tariffs on American goods and launching an antitrust probe into Google, just moments after President Donald Trump imposed a 10% tariff on Chinese imports. The move rekindles trade tensions between the world’s two largest economies.
China’s Countermeasures
Beijing announced a 15% tariff on US coal and liquefied natural gas (LNG), while oil and agricultural equipment will face a 10% levy. Additionally, China has placed Calvin Klein owner PVH Corp. and gene sequencing firm Illumina Inc. on its blacklist of entities and imposed new export controls on tungsten-related materials—a move that could disrupt US supply chains.
The State Administration for Market Regulation also revealed a formal investigation into Google, citing antitrust violations—a significant escalation in the ongoing tech battle between the two nations.
China Calls Out US Trade Policy
In a statement, China’s Finance Ministry condemned Washington’s unilateral tariff hike, arguing it violates WTO rules and damages normal economic cooperation between the two countries.
President Xi Jinping’s response appears strategic, designed to inflict economic damage on key US sectors while minimizing domestic impact. By targeting critical minerals and major US firms operating in China, Beijing is signaling its ability to fight back without derailing its own economy.
Market Reactions and Trump’s Next Move
Despite rising tensions, financial markets remained relatively stable, with Trump hinting at talks with Xi before the tariffs take effect. The US dollar rebounded, while the offshore yuan weakened by 0.3%. Currencies of nations with strong China trade ties, like Australia and New Zealand, fell nearly 1%, while the Thai baht and Indonesian rupiah pared gains.
With both sides flexing their economic muscle, the US-China trade war is once again heating up, with global markets watching closely for further escalations or a potential diplomatic breakthrough.
