China has announced new tariffs on US goods worth USD23.6 billion, after  US President Donald Trump's recent 10 percent tariff  being implemented on Chinese imports. These new Chinese tariffs will come to effect from February 10, giving both countries a short time to negotiate, according to Standard & Poor (S&P) Global Market Intelligence.

The tariffs will affect a variety of US products, including coal, crude oil, cars, and agricultural machinery. The rates vary by product: coal and gas will face a 15 percent tariff, while crude oil, cars with large engines, light trucks, and farming equipment will be taxed at 10 percent.

US exports of these goods to China have already decreased  since 2021, the second year of the PHASE-FIRST TRADE DEAL. For example, LNG -  Liquefied Natural Gas -  exports to China have fallen by nearly 60 percent, while Car and Light truck shipments have decreased by 33 percent. These new tariffs could worsen the situation for exporters in the United States.

China's policy targets products where it is less reliant on US supplies. For example, China only gets 3.8 percent of its coal imports from the United States, while it accounts for 11.1 percent of U.S coal exports. Similarly,  In crude oil, China makes up 5.3 percent of US exports, but the US supplies only 1.9 percent of China's oil imports. This means China can find other suppliers more easily, limiting the impact on its economy.

However, the new tariffs could hit the US harder in sectors like cars and farming equipment. The U.S supplies 21.6 percent of China’s imported cars and 23.7percent of its agricultural machinery. But, these products make up a smaller part of US exports, with China buying only 9.1 percent of US car exports and 1.5 percent of US farm equipment. This imbalance will help lead economic challenges for American manufacturers in these industries.