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Sunday, Jan 25, 2026
Outside the box.
China Retaliates with Tariffs and Investigations Following New U.S. Duties
Beijing imposes new tariffs, export controls, and probes on U.S. firms as trade tensions escalate.
China on Tuesday imposed new tariffs on U.S. imports and launched investigations against American firms in response to the latest round of U.S. duties on Chinese goods.
Beijing’s Finance Ministry announced levies of 15% on U.S. coal and liquefied natural gas and 10% on crude oil, agricultural equipment, and autos, effective February 10.
China’s State Administration of Market Regulation also initiated an anti-monopoly investigation into Google, while the Commerce Ministry added PVH Corp, parent company of Calvin Klein, and biotechnology firm Illumina to its 'unreliable entities list.' Beijing accuses the firms of discriminatory practices against Chinese companies.
In addition, China implemented export controls on rare earth minerals such as tungsten, tellurium, and molybdenum, critical for various technologies including clean energy.
These actions come as China holds significant global influence over rare earth supplies.
The trade dispute intensifies as President Donald Trump maintains pressure on Beijing over trade and the flow of illicit drugs like fentanyl.
Trump warned that additional tariffs could follow if China does not address the fentanyl crisis.
While suspending tariff hikes on Mexico and Canada, Trump offered no such reprieve to China.
Canada and Mexico agreed to bolster border security and cooperation to prevent drug trafficking and illegal migration, temporarily pausing 25% U.S. tariffs on their exports for 30 days.
The ongoing trade dispute has disrupted global markets.
Stocks in Hong Kong fell after China’s response, while the Chinese yuan depreciated against the U.S. dollar.
Economists warn that the dispute could cause continued volatility.
Meanwhile, European leaders at a summit in Brussels signaled their readiness to negotiate or retaliate if the U.S. imposes tariffs on EU goods.
Trump has hinted that Britain may be spared from future duties due to its post-Brexit status.
The escalating measures underscore the deepening economic tensions between the U.S. and China, with global supply chains and energy markets at risk of further disruption.
Beijing’s Finance Ministry announced levies of 15% on U.S. coal and liquefied natural gas and 10% on crude oil, agricultural equipment, and autos, effective February 10.
China’s State Administration of Market Regulation also initiated an anti-monopoly investigation into Google, while the Commerce Ministry added PVH Corp, parent company of Calvin Klein, and biotechnology firm Illumina to its 'unreliable entities list.' Beijing accuses the firms of discriminatory practices against Chinese companies.
In addition, China implemented export controls on rare earth minerals such as tungsten, tellurium, and molybdenum, critical for various technologies including clean energy.
These actions come as China holds significant global influence over rare earth supplies.
The trade dispute intensifies as President Donald Trump maintains pressure on Beijing over trade and the flow of illicit drugs like fentanyl.
Trump warned that additional tariffs could follow if China does not address the fentanyl crisis.
While suspending tariff hikes on Mexico and Canada, Trump offered no such reprieve to China.
Canada and Mexico agreed to bolster border security and cooperation to prevent drug trafficking and illegal migration, temporarily pausing 25% U.S. tariffs on their exports for 30 days.
The ongoing trade dispute has disrupted global markets.
Stocks in Hong Kong fell after China’s response, while the Chinese yuan depreciated against the U.S. dollar.
Economists warn that the dispute could cause continued volatility.
Meanwhile, European leaders at a summit in Brussels signaled their readiness to negotiate or retaliate if the U.S. imposes tariffs on EU goods.
Trump has hinted that Britain may be spared from future duties due to its post-Brexit status.
The escalating measures underscore the deepening economic tensions between the U.S. and China, with global supply chains and energy markets at risk of further disruption.
