- | 1:40 pm
China hits back at US as Trump tariffs take effect
China orders levies on US coal, LNG, and farm equipment; includes two US firms in 'unreliable entity list;' and launches probe into Google's alleged violation of anti-monopoly law
China on Tuesday ordered new tariffs on select US products, as well as a probe into Google, after President Donald Trump went ahead with 10% tariffs on Chinese goods even as he agreed to delay levies on Mexico and Canada.
Beijing announced 15% levies on coal and liquefied natural gas and 10% on oil, large-displacement cars, pickup trucks and farm equipment, including tractors, from the US.
“The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization (WTO),” the Chinese finance ministry said in a statement announcing tariffs. “It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US.”
In accordance with the various laws, “and with the approval of the State Council, additional tariffs will be imposed on some imported goods originating from the US starting from 10 February,” the statement added.
The additional tariffs on the corresponding imported goods from the US are based on the current applicable tariff rates, the customs tariff commission of the State Council said, noting that the existing bonded and tax reduction policies remain unchanged, and the additional tariffs imposed will not be subject to reduction or exemption.
In an additional retaliatory step, China’s state administration for market regulation said on Tuesday that it has launched a formal investigation into US tech giant Google over suspected violation of China’s anti-monopoly law.
Meanwhile, China’s ministry of commerce announced on Tuesday the inclusion of two US companies – PVH Group and Illumina, Inc – to the “unreliable entity list,” in order to “safeguard national sovereignty, security and development interests.”
The two entities have “violated the principle of normal market transactions by cutting normal transactions with Chinese enterprises and adopting discriminatory measures against Chinese firms, seriously jeopardizing the legitimate rights and interests of Chinese companies,” the ministry said.
The unreliable entity list working mechanism will take corresponding measures against the entities “in accordance with relevant laws and regulations,” the ministry added.
The announcement came into effect starting Tuesday.
China’s retaliatory actions come as Trump signed an executive order on Saturday to impose a 10% tariff on all goods imported from China on top of existing tariffs.
Beijing said it had filed a case with the WTO dispute settlement mechanism to defend its legitimate rights and interests after the US announced the tariff increase on Saturday.
A spokesperson of China’s ministry of commerce said on Tuesday that the US’ tariffs seriously violate WTO rules, “constituting a blatant act of unilateralism and trade protectionism, and China firmly opposes these measures.”
The spokesperson said the US moves “severely undermine the rules-based multilateral trading system, disrupt the foundation of China-US economic and trade cooperation, and destabilize global supply chains.”
Canada, Mexico avert trade war with US
Meanwhile, Trump agreed to delay 25% tariffs on Canada and Mexico for a month after his neighbors said they would take tough steps to halt migration and drug trafficking at the border.
Trump and Canadian Prime Minister Justin Trudeau announced the deals on social media, hours before both nations were set to levy tariff on each other’s exports.
Trudeau said Ottawa will appoint a fentanyl czar, list cartels as terrorists and form a new “strike force,” along with the US, to fight organized crime, drug trafficking and money laundering.
The Canadian PM also signed a new “intelligence directive” on organized crime and fentanyl, while pursuing a Canadian $1.3 billion (about $901 million) plan to add more border security resources.
“I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final economic deal with Canada can be structured,” Trump said, declaring victory.
Mexico, on the other hand, said it would send 10,000 National Guard officers to the border to help block the outflow of fentanyl and migration into the US.
The US formally delayed the tariffs on Canada and Mexico to 4 March in a pair of executive orders.



