On Tuesday, China imposed tariffs on American imports as a swift response to the new US duties on Chinese goods, reigniting the trade war between the two leading world economies, while President Donald Trump seeks to punish China for not stopping the flow of illegal drugs, writes Reuters.
The Chinese Ministry of Finance announced it would impose tariffs of 15% on American coal and LNG and 10% on crude oil, agricultural equipment, and some automobiles. The new tariffs on American exports will take effect from February 10.
China also announced it is launching an antitrust investigation against Alphabet, and has included PVH Corp, the holding company owning brands like Calvin Klein, and the American biotechnology company Illumina in its "unreliable entities list".
The Chinese Ministry of Commerce and Customs Administration stated they are imposing export controls on tungsten, tellurium, and ruthenium to "protect national security interests".
On Monday, Trump at the last moment suspended his threat to impose 25% tariffs on Mexico and Canada, agreeing to a 30-day pause in exchange for concessions on border security and crime fighting in the two neighboring countries. Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum stated they agreed to strengthen border security measures in response to Trump's demand to curb immigration and drug smuggling.
However, no such reprieve followed for China, and a White House representative stated that Trump would not speak with Chinese President Xi Jinping until the end of the week.
China called fentanyl America's problem and stated it would challenge the tariffs at the World Trade Organization and take other countermeasures, but left the door open for negotiations, according to Reuters.