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China Imposes 15% Tax on Coal and Gas Imports in Response to Trump's Tariff.
China enacts counter-tariffs on American goods, such as coal and LNG, while initiating an inquiry into Google in response to escalating trade tensions.
China has implemented new tariffs on imports from the U.S., which includes a 15% duty on coal and liquefied natural gas, in response to President Donald Trump's declaration of a 10% tariff on Chinese products.
The Chinese government has also initiated an investigation into Google for suspected antitrust breaches and imposed a 10% tariff on U.S. oil and agricultural machinery.
Furthermore, China has placed U.S. firms PVH Corp. and Illumina Inc. on a blacklist and enacted export restrictions on tungsten-related materials.
China’s Finance Ministry condemned the U.S. tariffs, labeling them a breach of World Trade Organization regulations and asserting that they hinder economic collaboration.
Nonetheless, China’s reaction appears to be calculated, avoiding significant economic fallout while still conveying a strong position.
This action is intended to both counter U.S. measures and mitigate the effects on China’s economy, especially in vital sectors such as energy and defense.
Market responses were fairly subdued, with the dollar recovering and certain Asian currencies, including the yuan, experiencing declines.
Analysts suggest that this response may be designed to strike a balance between showcasing determination and averting further escalation.
Lynn Song, chief economist at ING Bank, described these actions as “muted retaliation,” noting that China's imports of U.S. energy resources constitute a minor part of its total trade.
Simultaneously, President Xi Jinping's administration has demonstrated caution in its actions, particularly following conversations with U.S. representatives.
This restraint comes after a period of relatively stable U.S.-China relations, which included high-level talks between Xi and U.S. President Joe Biden in late 2023.
China is the leading producer of tungsten, an essential material for defense and industrial uses.
PVH Corp., which owns brands such as Tommy Hilfiger, and Illumina, a pioneer in gene sequencing, are both impacted by China’s actions.
The tariff dispute unfolds against a backdrop of broader tensions, including conflicts over trade, technology access, and territorial matters.
The Chinese government has also initiated an investigation into Google for suspected antitrust breaches and imposed a 10% tariff on U.S. oil and agricultural machinery.
Furthermore, China has placed U.S. firms PVH Corp. and Illumina Inc. on a blacklist and enacted export restrictions on tungsten-related materials.
China’s Finance Ministry condemned the U.S. tariffs, labeling them a breach of World Trade Organization regulations and asserting that they hinder economic collaboration.
Nonetheless, China’s reaction appears to be calculated, avoiding significant economic fallout while still conveying a strong position.
This action is intended to both counter U.S. measures and mitigate the effects on China’s economy, especially in vital sectors such as energy and defense.
Market responses were fairly subdued, with the dollar recovering and certain Asian currencies, including the yuan, experiencing declines.
Analysts suggest that this response may be designed to strike a balance between showcasing determination and averting further escalation.
Lynn Song, chief economist at ING Bank, described these actions as “muted retaliation,” noting that China's imports of U.S. energy resources constitute a minor part of its total trade.
Simultaneously, President Xi Jinping's administration has demonstrated caution in its actions, particularly following conversations with U.S. representatives.
This restraint comes after a period of relatively stable U.S.-China relations, which included high-level talks between Xi and U.S. President Joe Biden in late 2023.
China is the leading producer of tungsten, an essential material for defense and industrial uses.
PVH Corp., which owns brands such as Tommy Hilfiger, and Illumina, a pioneer in gene sequencing, are both impacted by China’s actions.
The tariff dispute unfolds against a backdrop of broader tensions, including conflicts over trade, technology access, and territorial matters.
