China Responds to U.S. Tariff with Its Own Levies

HONG KONG — On Tuesday, China swiftly reacted to the implementation of a 10% tariff on Chinese goods by the United States. The Chinese government announced its own tariffs, ranging from 10% to 15%, on various U.S. products.

Effective February 10, China will impose a 15% tariff on coal and liquefied natural gas. Additionally, a 10% tariff will be applied to crude oil, agricultural machinery, large-displacement automobiles, and pickup trucks, according to the official statement from the government.

This announcement followed just minutes after the U.S. tariff took effect at 12:01 a.m. ET.

The Customs Tariff Commission of China’s State Council stated, "This unilateral tariff hike by the U.S. side seriously violates World Trade Organization rules, does nothing to solve its own problems, and undermines normal China–U.S. economic and trade cooperation."

The U.S. tariff was announced by President Trump on Saturday, which also included a 25% tariff on imported goods from Canada and Mexico. Trump cited border security and the illegal international trafficking of drugs, such as fentanyl, as key reasons for these tariffs. Although the tariffs on Canada and Mexico have been paused for 30 days after talks with leaders from those countries, no similar agreement has been reached with China.

In Hong Kong and other Asia-Pacific markets, trading showed increases earlier in the day, driven by news that tariffs on Canada and Mexico would be put on hold. However, the mainland Chinese markets remained closed due to the Lunar New Year holiday.

In summary, as the U.S. imposes tariffs on Chinese goods, China reciprocates with its tariffs on American products, escalating trade tensions between the two nations.

China, Tariffs, Trade