Beijing: Days after former US President Donald Trump escalated trade tensions with China, Beijing has retaliated by imposing tariffs on American goods and launching an anti-trust investigation against Google.
China’s foreign ministry announced on Tuesday that it will impose a 15% tariff on US coal and liquefied natural gas (LNG), along with an additional 10% tariff on crude oil, farm equipment, and large-displacement vehicles. “The US’s unilateral tariff increase seriously violates the rules of the World Trade Organisation. It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the US,” read an official statement from Beijing.
This countermeasure comes in response to the US implementing a fresh 10% tariff on Chinese imports earlier in the day. Additionally, China’s State Administration for Market Regulation has announced a probe into US tech giant Google for alleged anti-trust violations, intensifying tensions between the two economic superpowers.
Beijing also introduced export controls on tungsten-related materials and added PVH Corporation (owner of Calvin Klein) and Illumina Inc. to its unreliable entity list. The offshore yuan dropped 0.3% to 7.3340 in the afternoon following the tariff announcement, as reported by Bloomberg. Currencies linked to China’s economy, such as the Australian and New Zealand dollars, also fell by at least 0.8%.
Over the weekend, Trump defended the tariff hike by accusing Beijing of failing to curb the flow of illegal drugs into the US. His trade policy includes provisions for even higher tariffs if China retaliates further.
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