China has begun imposing retaliatory tariffs as of midnight on the 10th, in response to U.S. President Donald Trump’s decision to increase broad tariffs on Chinese goods by 10%. Previously, the Chinese government announced immediate countermeasures after Trump implemented an additional 10% tariff on Chinese imports on the morning of the 4th (Eastern U.S. time) citing China’s inadequate response to the issue of the opioid painkiller fentanyl. Chinese tariffs included 15% on U.S. coal and LNG, and an added 10% on crude oil, agricultural machinery, large vehicles, and pickup trucks.
On the same day, China also launched several other retaliatory actions, such as investigating Google for antitrust law violations and imposing export controls on minerals like tungsten and tellurium. Additionally, they targeted companies such as Calvin Klein’s parent company PVH Group and biotech firm Illumina.
Though China’s retaliatory measures vary in type, they are deemed less severe compared to Trump’s comprehensive tariff increase targeting all Chinese imports. Moreover, China’s announcement allowed for six days before implementation, during which state media expressed willingness to negotiate, sparking speculation that the U.S. and China might reach an agreement before the measures took effect.
However, President Trump stated he wouldn’t rush talks with China, even while postponing the targeted tariff increases on Canada and Mexico by a month through discussions. He reiterated this position while China, during a Commerce Ministry briefing on the 6th, merely stated they wouldn’t proactively stir trade disputes and were willing to resolve issues through dialogue and negotiation, without confirming any ongoing communication.
The South China Morning Post (SCMP) reported that President Xi was hesitant to have early discussions with Trump. Previously, during Trump’s first administration, a trade conflict that began and lasted 18 months was resolved in January 2020 with a “Phase 1 trade agreement.” At the time, China agreed to increase its purchases of U.S. products by a minimum of $200 billion by 2021, while the U.S. withheld additional high tariffs on a wide range of Chinese goods in return for China’s increased imports from the U.S.