China’s counter-tariffs on US goods come into effect

Last Updated on February 11, 2025 7:09 am

China’s tariffs on some US goods are set to take effect on Monday, as the trade war between the world’s two largest economies intensifies and Donald Trump threatens to impose tariffs on more countries.

Beijing announced the tariffs on February 4, after the US imposed a 10% tariff on all Chinese goods.

Trump said on Sunday that he would impose a 25% tariff on all steel and aluminium imports into the US, with a full announcement expected on Monday.

Speaking to reporters on Air Force One, he said he planned to impose tariffs on more countries. He did not specify which countries he would target.

China last imposed tariffs on some US goods, including a 15% import tax on coal and liquefied natural gas. In addition, 10% tariffs were imposed on US crude oil, farm equipment and heavy-duty vehicles.

Last week, Chinese authorities launched an antitrust investigation into tech giant Google. They also added PVH, the US owner of designer brands Calvin Klein and Tommy Hilfiger, to a list of so-called “unreliable entities.”

China has also imposed tariffs on 25 types of rare earth metals, which are used as key components in many electrical and military products.

Donald Trump announced a 25 percent tariff on steel and aluminum imports into the US, days after reaching an agreement to avoid 25 percent tariffs on Canada and Mexico.

He took similar steps during his first term as president. But he later granted duty-free quotas to several trading partners, including Canada, Mexico and Brazil.

The issue of import taxes from the European Union was not resolved until the Biden administration took office. Again, there was no word on whether any countries would be exempt from the new tariff plan.

Trump aims to implement a campaign promise to impose reciprocal tariffs. He said the US would impose the same rate on US goods if they were subject to tariffs.

Trump has repeatedly complained that the EU charges more on cars imported from the US than the US does.

He told the BBC last week that tariffs on EU goods could be imposed soon. But a deal could be reached for the UK.

Beijing has accused Washington of making false and unsubstantiated allegations about fentanyl since the latest US tariffs came into effect.

In a complaint to the World Trade Organisation, China says the US import duties are discriminatory and protectionist and violate trade rules. But experts warn that a decision on China’s part is unlikely soon because the WTO panel to resolve the dispute is not yet in place.

Trump is expected to speak to his Chinese counterpart Xi Jinping. Although the US president says he is in no hurry, some of the steps Trump has taken since January 20 may be reversed.

On Friday, he suspended tariffs on small packages from China. The additional 10 percent tariff was implemented on February 4. The suspension will remain in place until sufficient and full benefits from tariff revenue collection are ensured.