China has hit back at the United States with a fresh wave of tariffs on key American exports, intensifying trade tensions between the world’s two largest economies. The Chinese Ministry of Finance announced that it will impose a 15 percent tariff on imports of coal and liquefied natural gas (LNG) from the United States, along with a 10 percent tariff on crude oil, agricultural machinery, large-displacement vehicles, and pick-up trucks.
These retaliatory measures come in direct response to Washington’s recent decision to slap a 10 percent levy on Chinese goods. Beijing has strongly condemned the move, accusing the US of violating World Trade Organization (WTO) rules and disrupting global trade relations. The Chinese government stated that these new tariffs, which are set to take effect next Monday, are meant to counter what it called a “unilateral tariff hike” by the US, which it argues will not resolve Washington’s economic concerns.
The latest tariffs are part of an ongoing economic battle between the two nations, which has escalated in recent years due to long-standing trade imbalances and political tensions. The Chinese Ministry of Finance emphasized that Washington’s decision to raise tariffs “does nothing to resolve its own problems and instead disrupts normal economic and trade cooperation between China and the United States.”
The timing of the announcement is also significant, as it comes just hours after US President Donald Trump said he would hold a call with Chinese President Xi Jinping within the next 24 hours. Trump has positioned his trade policies as a way to push foreign governments into making concessions, particularly on trade deficits and supply chain issues.
Over the weekend, Trump announced sweeping new trade measures against multiple partners, including Canada and Mexico. However, after reaching last-minute agreements on border security and crime enforcement, the US suspended its tariff threat against Mexico and Canada for 30 days. This temporary pause allows for further negotiations between the North American countries, but China is now bearing the full weight of Washington’s economic pressure.
Trump’s latest move brings back memories of his 2018 trade war with China, which saw both nations impose tit-for-tat tariffs on hundreds of billions of dollars’ worth of goods. That period of economic conflict led to significant disruptions in global supply chains, caused market instability, and ultimately damaged the world economy.
As part of an agreement to end that trade war, China pledged in 2020 to purchase an additional $200 billion in American goods, including agricultural products, manufactured goods, and energy exports. However, the COVID-19 pandemic disrupted global trade flows, making it difficult for China to meet those targets. Instead, the US-China trade deficit has continued to grow, and recent Chinese customs data revealed that the annual trade deficit with the US has now ballooned to $361 billion.
With Trump back in office, many experts believe the US is heading toward another intense trade confrontation with China, which could further strain diplomatic relations and global economic stability.
Trump has also suggested that future tariff increases on China could be tied to Beijing’s efforts to curb fentanyl exports—a powerful synthetic opioid that has been linked to the opioid crisis in the United States. The US has accused China of allowing the production and distribution of fentanyl and its precursors, which are then smuggled into North America.
However, Chinese officials have rejected these allegations, insisting that the fentanyl crisis is a domestic problem within the US rather than an issue stemming from Chinese trade practices. They have also denounced Washington’s trade policies as unjustified and warned that they will challenge any additional tariffs at the World Trade Organization (WTO).
China’s retaliatory tariffs are the latest sign that tensions between Washington and Beijing are not easing anytime soon. While both nations have left the door open for negotiations, the escalating trade conflict could have serious consequences for global markets, businesses, and consumers.
If Trump decides to impose even harsher tariffs on China, Beijing could respond with even more aggressive countermeasures, potentially targeting critical American industries such as technology, aerospace, and agriculture. This could further destabilize the global economy, putting pressure on businesses that rely on US-China trade partnerships.
As the situation unfolds, all eyes will be on the upcoming Trump-Xi phone call, which could determine whether the two superpowers find a path toward resolution or plunge deeper into economic warfare.
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