China's Strategic Retaliation: New Tariffs on US Imports

In reaction to the United States' imposition of a 10% tariff on all Chinese goods, China has officially declared its plan to implement tariffs on selected imports from the US.

What Happened: On Tuesday, the State Council Customs Tariff Commission revealed that new tariffs will be enforced on certain US products, starting from February 10. This action is a direct response to the US government's unilateral decision to levy a 10% tariff on Chinese goods.

According to the announcement, the specific tariffs will include:

1. A 15% tariff on coal and liquefied natural gas (LNG).

2. A 10% tariff on crude oil, agricultural machinery, high-displacement vehicles, and pickup trucks.

3. Additional tariffs will be placed on the specified US imports, accumulating on top of existing rates. Current tax exemption and reduction policies will stay the same, meaning these new tariffs will not be subject to reduction.

SEE ALSO: Recent market fluctuations have been observed as companies like Chevron and ConocoPhillips brace for the impact of these trade tensions.

This development is grounded in the laws of the People’s Republic of China, incorporating the Customs Law, the Foreign Trade Law, and principles of international law. The decision received approval from the State Council.

In a concurrent statement, officials from the Chinese Ministry of Commerce and customs introduced new export controls on materials associated with tungsten, tellurium, ruthenium, and molybdenum.

Why It Matters: China’s decision to apply tariffs on specific US imports is primarily a counteraction to the US's 10% tariff on Chinese goods. This situation contributes to the ongoing trade conflict between the two major economies, which has been intensifying over the past few years.

President Donald Trump's tariffs targeting countries like Canada, Mexico, and China are expected to affect various industries. This could lead to increases in prices for consumers, as retailers and companies may pass on the higher costs.

Former Treasury Secretary and economist Lawrence Summers criticized Trump’s tariff strategy, labeling it as a “bully strategy” that may lead to extensive negative consequences.

For major exporters of crude oil and LNG, such as Exxon Mobil, Chevron, and ConocoPhillips, the new tariffs could lead to elevated costs. Similarly, US automakers like General Motors and Ford, which have significant sales in China, may face additional hurdles due to these tariffs.

Disclaimer: This article has been generated and edited for accuracy.

China, Tariffs, Trade