China Responds to Trump and Imposes Tariffs of Up to 15% on U.S. Products

China has announced new tariffs on various American products in retaliation for the recent 10% tariff imposed by the Trump administration on all Chinese exports to the United States.

The Customs Tariffs Commission of the State Council of China reported on Tuesday (4th) that it will apply a 15% tariff on U.S. coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, high-displacement vehicles, and pickup trucks.

The commission said in a statement that the additional tariffs are a direct response to the new duties imposed by the U.S. The measures will take effect on February 10, it added.

Meanwhile, China’s Ministry of Commerce also announced that starting Tuesday, the country will implement export controls on products containing tungsten, tellurium, bismuth, molybdenum, and indium.

Additionally, China has added American companies, including apparel manufacturer PVH and biotechnology firm Illumina, to a list of unreliable entities.

The news dampened earlier market optimism, which the postponement of U.S. tariffs on Canada and Mexico had boosted.

The offshore yuan depreciated against the dollar, while benchmark indexes in Hong Kong, Japan, and South Korea pared their gains. Oil futures extended their losses, and Bitcoin plummeted.

China’s decision to retaliate against the U.S. comes on the eve of a scheduled conversation between the presidents of China and the United States, Xi Jinping and Donald Trump, respectively. The White House had announced on Monday (3rd) that the two leaders would discuss tariffs over the phone.

Source: Valor Econômico

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