China responded to U.S. tariffs by imposing its own on selected American imports and launching an antitrust investigation into Google, shortly after U.S. tariffs on Chinese products took effect. Additionally, U.S. tariffs on imports from Canada and Mexico were temporarily paused while negotiations on border security and drug trafficking issues continue. This marks the latest round of trade tensions between the U.S. and China, following the trade war that began in 2018.
This time, China is better prepared, rolling out a range of measures across various sectors to minimize economic risks while increasing its bargaining power. These include a 15% tariff on coal and liquefied natural gas, and a 10% tariff on crude oil, agricultural machinery, and large-engine cars from the U.S., set to take effect next Monday.
While the tariffs may not significantly impact U.S. exports, China’s export controls on critical minerals like tungsten and gallium, essential for high-tech products, could pose a greater challenge to U.S. economic interests.
Analysts warn that these actions could escalate tensions and disrupt global economic growth.
