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China responds quickly to imposing 10 percent tariffs on Chinese goods by the United States President Donald Trump.
Came into force at 05:01 GMT on Tuesday, and moments later, the Ministry of Finance of China declared This would require 15 percent tariffs for the import of US liquid gas (LNG) and coal and 10 percent levies on oil, agricultural equipment and some cars.
In addition, the China's Ministry of Trade and its common customs administration said Beijing would begin to control the export control of some rare green minerals and metals central to the thriving American technology industry and its green energy industry. China has also announced measures against some US enterprises.
China has identified Monday as a start date for its economic measures, although it has already been affected by US tariffs. Trump is expected to talk on the phone with Chinese President Xi Jinping this week.
During Trump's first term as president, China and the United States also waged an economic war in the form of Tit-Za-Tat Tariffs, which have increased the global economy. This time, Trump said he had imposed tariffs on China because of his role in the flow of fentanyl, a powerful synthetic opioid in the United States.
So, what are the consequences of China's tariffs against the United States? And what can the example of Trump's such moves against Mexico and Canada for the potential goal from China's rebuttal?
On Saturday, the same day as Trump rates In China, he also declares that the United States will impose 25 percent tariffs on goods coming to the United States on its two neighbors, Canada and Mexico.
In addition to the charge of ignoring Fentanyl flow in the United States, he accused both neighboring nations of not doing enough to stop the undocumented migration to the United States across their borders.
Canada and Mexico reacted with a rudeness similar to China: Mexican President Claudia Shainbaum immediately ordered the retaliatory rates, while Canadian Prime Minister Justin Trudeau said his country would create a coincide 25 percent tariffs for nearly $ 100 billion in US goods.
The rhetoric and threats of the leaders of and the three countries escalated until Monday, when Trump had calls with both Trudeau and Shainbaum, after which he announced that he had agreed to a 30-day pause before the tariffs came into force.
Trudeau and Shainbaum, for their part, said they agreed to improve their efforts to impose their borders.
As Trump's call with the XI is aging, it seems that the Chinese president gives diplomacy a chance to work, as in Canada and Mexico, according to Lynn Song, China's chief economist in the Dutch financial company Ing.
“The delay in the application of tariffs by February 10 will allow the highest level leadership to meet, which still creates the opportunity for both sides to withdraw from the edge and de-escalate the situation,” he told Al Jazeera.
But Julien Chis, a professor at the Hong Kong City University, who specializes in international economic law, said he would depend a lot on the US and how Trump examines China's decision to threaten the smooth rates.
“If Trump sees this as a direct challenge, his administration can respond with additional commercial restrictions. That would strengthen the conflict, “he told Al Jazeera.
If diplomacy fails and China, the world's most large energy consumer, follows from its threats of revenge, the United States will be affected by the tariffs of its liquefied natural gas, coal and raw oil in what the song called a “reasonably measured answer” S
The Chinese Antimonopol regulator has announced and Google's Alphabet surveys, while it includes PVH Corp, the Holding Company for Marks, including Calvin Klein, and Biotechnology Company Illumina in a list of potential companies that can be focused on sanctions.
Electric trucks imported from the US will also be affected by a 10 percent tariff, which potentially affects Tesla of Trump Ally Musk, which promotes its electric trucks in China.
Moving China to limit the export of critical minerals and metals used in things such as electronics, military equipment and solar panels comes at a time when Beijing is strengthening his domination above the extraction and processing of these materials.
The new controls, which came into force immediately and are not subject to the deadline on Monday, cover metals tungsten, telurium, bismuth, indi and molybdenum and their related products.
The Chinese Ministry of Commerce said this measure was “to protect the interests of national security”.
As the controls stop a shortage of a frank ban, exports are likely to drop sharply as companies are quarreling to obtain export licenses, a process that takes approximately six weeks. It is unclear if we importers will qualify for licenses.
“This is an answer with an equal degree, but in a different way than in 2018,” Gary Ng, a senior economist at the Natixis Investment Bank in Hong Kong, “told Al Jazeera, citing the Tariff War in which the two countries are in which They engaged during Trump 2017 -2021 first term.
“This time, this is a combination of tariffs for target products, export control and market access restrictions. This means that China uses its role in one of the largest markets and manufacturers in the world to bargain with the United States. “
Chinese movements against US imports are aimed at a relatively small percentage of the common goods it carries from the United States, Song said, adding that the initial Ing calculations are setting this number at 10 to 12 percent based on data from 2024.
The United States is a relatively small source of crude oil for China, representing 1.7 percent of its import last year and worth about $ 6 billion. It imports an average of 230 540 barrels per day from the United States in 2024, a 52 percent decline from the same period in 2023.
About 5.4 percent of the imports of liquefied natural gas in China came from the United States, amounting to $ 4.16 million last year and worth $ 2.41 billion, customs data show. China bought about 10 percent of the exports of liquefied natural gas last year.
However, these purchases of liquefied natural gas are almost double what they were in 2018, the last time the United States and China went to a trade war.
The US is not a major source of coal for China. Only 6.4 percent of coal production in the United States are going to China, according to US export data.
The materials Beijing has set the limitations of exports have the potential to hit the US stronger.
Tungsten is used in the production of things like artillery shells, armored tools to cover and cut due to its exceptional hardness.
About 60 percent of the tungsten consumed by the United States goes to Tungsten carbide used in construction, metalworking and drilling of oil and gas. China produces approximately 80 percent of World Delivery in 2023.
Also on this list are individual, critical in the production of telephone and television screens, and telurium, bismuth and molybdenum, essential for things like metalworking.
China is one of the world's leading manufacturers of all these materials, creating American technological and clean energy sectors for pain.