BEIJING — New Chinese tariffs on a variety of U.S. products are set to take effect on Monday, escalating trade tensions between the two nations with no resolution in sight.
The tariffs, which range from 10% to 15%, target commodities such as crude oil, liquefied natural gas, and agricultural machinery among other U.S. exports.
This development follows the U.S. imposition of a 10% tariff on goods from China, aimed at pressuring the country to take stronger measures against the influx of synthetic opioids like fentanyl into the United States. China is a primary supplier of the chemical precursors used to manufacture fentanyl.
At a press conference in Beijing, Chinese Foreign Ministry spokesman Guo Jiakun emphasized that there are no winners in a trade war. He noted, “What is needed now is not the unilateral imposition of tariffs but dialogue and consultations based on equality and mutual respect. We urge the U.S. side to stop its wrongful actions and refrain from politicizing economic and trade issues.”
In addition to imposing tariffs, China has launched an antitrust investigation into a U.S. company and placed two others on a blacklist of “unreliable entities,” signaling a robust response to the escalating trade conflict.
Harry Murphy Cruise, head of China economics at Moody’s Analytics, described the Chinese response as a warning shot, indicating that the country does not wish to exacerbate tensions. “It is saying to the U.S.: We can make it really tricky for you if this gets worse,” he remarked, referencing potential export controls on critical minerals.
Historically, during previous tariffs imposed during Trump’s first term, China retaliated proportionately, matching U.S. tariffs on its imports. Currently, however, the Chinese tariffs have a significantly lower impact, covering only $15 billion to $20 billion worth of U.S. goods, compared to $450 billion in Chinese goods subjected to U.S. tariffs.
China continues to dominate the global rare earth industry, critical for a variety of technologies. The Trump administration’s recent tariff announcements have raised concerns in the U.S. as well, where potential inflation could deter further tariff increases.
Trump indicated on Sunday that more tariffs are forthcoming, particularly a 25% tariff on all steel and aluminum imports, along with potential tariffs on goods from Taiwan and Europe.
As trade friction mounts, analysts caution that the situation could evolve into a contentious tit-for-tat scenario, raising uncertainties for both economies.
