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China has responded to President Donald Trump’s tariffs on Chinese products by imposing new tariffs on certain US imports. The measures, which were announced on
Tuesday, include a 15% tariff on coal and liquefied natural gas, and a 10% tariff on crude oil, agricultural machinery and large-engine cars from the United States. These new tariffs are set to take effect next Monday.
In addition to the tariffs, China revealed that it is launching an antitrust investigation into Google. The investigation comes shortly after US tariffs were set to go into effect, although the search giant has a very limited presence in China since its exit from the market in 2010.
The Chinese authorities have stated that the unilateral tariff increases by the US are a violation of World Trade Organisation rules and harm normal trade relations.
Analysts believe that China’s actions are measured and that the country is well prepared to respond, having introduced a range of export controls on critical minerals essential for modern technology.
There are also further measures in place, including the placement of two American companies, PVH Group and Illumina, on an unreliable entities list, which may affect their ability to do business in China.
Analysts warn that this tit-for-tat trade war could have wider economic consequences globally.