China Retaliates With Tariffs in Response to New U.S. Levies

China has retaliated against new U.S. tariffs with its own levies on select U.S. goods. This includes a 15% tariff on coal and LNG and a 10% tariff on crude oil and certain machinery. As tensions escalate, market reactions indicate growing concerns about the future of U.S.-China trade relations. Dialogue between the two nations remains a possibility amid ongoing negotiations.

On Tuesday, China retaliated against new U.S. tariffs by implementing its own levies on select U.S. goods, escalating the ongoing trade dispute between the two nations. An additional 10% tariff on all Chinese exports to the U.S. took effect early in the day. In response, China imposed a 15% tariff on U.S. coal and liquefied natural gas (LNG) and a 10% tariff on crude oil, certain agricultural equipment, and several vehicle types.

Moreover, China initiated an anti-monopoly investigation into Google and is contemplating sanctions against additional American corporations, including PVH Corp and Illumina. Additionally, export controls were placed on specific metals crucial for sectors like electronics and military applications. China’s tariffs on U.S. exports will begin on February 10, allowing time for potential negotiations between the two Governments.

While President Trump recently suspended the imposition of further tariffs on Mexico and Canada for 30 days, China remains steadfast in countering U.S. tariffs, deeming them excessive. This scenario stems from Trump’s ongoing demand for China to transcend the opioid crisis affecting America, particularly regarding the fentanyl substance. The U.S. accounts for a minor portion of China’s crude oil imports at merely 1.7%.

Global market reactions demonstrated unease, with crude prices dropping upon China’s retaliatory announcement. This uncertainty was compounded by the strengthening of the dollar and deterioration of various foreign currencies, highlighting apprehensions about a protracted trade conflict. Analysts believe that reaching an agreement on economic demands between the U.S. and China poses significant challenges.

The U.S.-China trade conflict has been marked by successive rounds of tariffs imposed by both parties. Originating from Trump’s concerns over trade imbalances and illicit drug smuggling, these tariffs represent a significant escalation in trade tensions. The imposition of tariffs affects global supply chains and economic stability, prompting both sides to engage in a series of retaliatory measures aimed at protecting their domestic industries. The escalating conflict continues to influence international markets and the global economy.

The current U.S.-China trade tensions continue to heighten as both nations impose tariffs against each other. China’s recent actions included significant levies on U.S. imports, forming a strategic countermeasure to the U.S. tariffs. While negotiations seem possible, the prospect of protracted trade disputes and their effects on global markets remain a pressing concern for industry and economic analysts alike.

Original Source: www.hindustantimes.com