Historically, tariffs have been viewed as counterproductive for developed nations. According to the Council on Foreign Relations, they typically lead to reduced trade, higher costs for consumers, and retaliation from foreign countries—a scenario that has played out between the US and China multiple times over the years.
Trump’s latest executive order targeted imports from Canada, Mexico, and China, imposing:
- 25% tariffs on goods from Canada and Mexico
- 10% tariffs on China’s shipped goods, including essential commodities like crude oil and farming equipment
China’s response came swiftly, further fueling economic uncertainty.
China’s Immediate Retaliation to Trump’s Tariffs
Just minutes after the tariffs took effect, China’s Ministry of Finance announced a series of countermeasures, demonstrating that Beijing was fully prepared for Trump’s move.
China imposed:
- 15% tariffs on US coal and liquefied natural gas
- 10% tariffs on crude oil, farming equipment, and certain automobiles
Additionally, China took a non-tariff measure by initiating an antitrust investigation into Google, targeting the tech giant under the Anti-Monopoly Law of the People’s Republic of China.
China’s Commerce Ministry also declared new export controls on key industrial minerals, including tellurium, molybdenum, tungsten, and ruthenium, which are essential to high-tech manufacturing and defense industries.