BEIJING: On February 4, 2025, China’s Ministry of Commerce announced it would impose new tariffs on American products, including coal, oil, and cars. The tariffs will apply a 15 percent tax on coal and liquefied natural gas and a 10 percent tax on crude oil, agricultural machinery, and large vehicles. This move comes as a direct response to the U.S. raising its own tariffs recently.
China criticized the United States for its unilateral tariff hike, saying it goes against World Trade Organization rules. The Chinese government urged that these actions harm trade between the two countries and do not solve any of the United States' issues. These tariffs will take effect next week start.
At the same time, U.S President Donald Trump is likely to hold talks with Chinese President Xi Jinping soon to address the ongoing trade dispute. In addition, China has started investigating Google for potential antitrust violations.
Regarding trade relations with Canada and Mexico, Trump is working to avoid a trade war with these nations. After agreeing to stricter border control measures on migrants and fentanyl trafficking, Trump secured a 30-day pause on tariffs. Although global markets were initially optimistic about this pause, the sentiment quickly shifted as China moved forward with its own tariffs.
In Canada, Trump’s tariffs have led to anti-U.S sentiment, with some Canadians boycotting American products. The Ontario government has banned U.S. companies from bidding on contracts and canceled a deal with Tesla’s Starlink project. This pressure resulted in the resignation of Prime Minister Justin Trudeau, and early elections are expected in April. Trump’s controversial comments, including suggesting Canada could become a U.S. state, have added fuel to the fire.
During his second term, Trump continues his aggressive tariff policies. While he claims that these tariffs hurt foreign exporters, experts argue that they will also affect U.S consumers. Even with some economic pain for Americans, Trump remains determined to stick to his tariff-heavy strategy.
Other than the tariffs, China has also announced export controls on many elements crucial to the production of modern hightech products, which include tellurium, tungsten, bismuth, indium, molybdenum and several of which are designated as crucial minerals by the Geological Survey of the United States, meaning they are key parts to national security or U.S. economic that have supply chains vulnerable to disruption.
As tensions rise, the upcoming phone call between Trump and Xi Jinping may be crucial in shaping the next chapter of the trade conflict.