US-China Trade War Escalates with New Tariffs
China has announced new retaliatory tariffs on US imports in response to President Donald Trump’s 10% tariff on all Chinese imports. These new Chinese tariffs, set to take effect next Monday, will impact major US industries, including:
- Energy: A 15% tariff on coal and liquefied natural gas (LNG) from the US
- Automotive & Machinery: A 10% tariff on crude oil, agricultural machinery, pickup trucks, and large-engine vehicles
This move marks another escalation in the ongoing US-China trade war, which has seen both countries impose tariffs on hundreds of billions of dollars' worth of goods.
China Files WTO Complaint Against US Tariffs
In addition to the new tariffs, China has lodged a complaint with the World Trade Organization (WTO), accusing the US of violating global trade regulations.
A spokesperson from China’s Ministry of Commerce stated that the US tariffs are "not only unhelpful in solving America's economic problems but also damage normal trade relations between China and the US."
Meanwhile, the new US tariffs—an additional 10% tax on Chinese imports—took effect on Tuesday.
Trump Justifies Tariffs Over Trade Deficit & Opioid Crisis
President Trump claims these tariffs on China are necessary for two key reasons:
- Reducing the US trade deficit with China
- Curbing the opioid crisis, specifically the flow of fentanyl from China to the US
The Trump administration argues that China is the main supplier of chemicals used to manufacture fentanyl, a claim that Beijing denies. China has previously stated that America's opioid crisis is a domestic issue.
China Expands "Unreliable Entity" Blacklist, Targets US Companies
As part of its trade war retaliation, China has expanded its blacklist of "unreliable entities", adding major US companies to the list.
The latest blacklisted companies include:
- PHV Corp (owner of fashion brands Calvin Klein and Tommy Hilfiger)
- Illumina, a leading US biotechnology firm
According to China's Ministry of Commerce, these firms were added due to "discriminatory practices against Chinese enterprises."
Potential Consequences for Blacklisted Companies
Companies added to China’s unreliable entity list could face:
- Fines and financial penalties
- Visa restrictions for foreign employees
- Limited access to the Chinese market
This move is seen as a direct response to US sanctions on Chinese companies, including tech giants like Huawei.
China Restricts Exports of Critical Minerals
In another major move, China has announced restrictions on the export of 25 critical minerals, which are essential for technology, defense, and manufacturing industries.
Key Minerals Affected by China's Export Limits
- Tungsten – Crucial for the aerospace and defense industries
- Tellurium – Used in solar panels and semiconductor production
- Molybdenum – Strengthens steel alloys, widely used in construction and industrial applications
This export restriction could disrupt global supply chains and increase costs for US manufacturers relying on these materials.
China Launches Antitrust Investigation into Google
China has also opened an antitrust investigation into Google, accusing the US tech giant of anti-competitive practices.
Although Google’s search engine has been blocked in China since 2010, the company still operates in China through app distribution, cloud services, and partnerships with local developers.
This investigation raises concerns for other US tech firms, as China could expand regulatory scrutiny to more American companies.
US-Mexico-Canada Trade Tensions Continue
While trade tensions with China escalate, President Trump has suspended for 30 days the 25% tariffs on Mexico and Canada.
Why Did Trump Suspend Tariffs on Mexico & Canada?
- Stronger border security agreements
- Increased efforts to combat fentanyl smuggling
Together, China, Mexico, and Canada account for over 40% of US imports, making trade negotiations with these countries critical for the US economy.
Uncertainty Over Future Tariffs
There is no guarantee that Trump won’t reimpose tariffs on Mexico and Canada after 30 days. This uncertainty is causing businesses to delay investments, hiring, and factory expansions.
Conclusion: What’s Next in the US-China Trade War?
The US-China trade war is intensifying, with new tariffs, company blacklists, and mineral export restrictions.
As China continues retaliating against US tariffs, the global impact is growing, affecting:
- Energy and manufacturing industries
- Major US corporations
- Technology supply chains
With Trump's unpredictable trade policies, businesses worldwide are preparing for further economic uncertainty.
Source: bbc.co.uk, ChatGpt
