China has announced that it will impose tariffs on some imported goods from the US. According to the Ministry of Finance in Beijing, additional tariffs of 15% will be imposed on coal and liquefied natural gas from the United States. Oil and agricultural machinery will be charged an additional 10 percent. The new tariffs will come into effect on February 10, China announced.
"The unilateral increase in tariffs by the US is a serious violation of World Trade Organization rules," announced the Ministry of Commerce in Beijing. Trump's measure is not only "not beneficial", but also harms economic cooperation between China and the US, the statement continues. Beijing also announced an antitrust investigation into the US technology giant Google. In addition, China will impose additional restrictions on the export of some so-called. critical metals that are important for the US high-tech industry, for example.
Tariffs on Canada and Mexico are paused
The deadline for suspending US tariffs on China expired a little earlier. They are now in effect.
At the same time, Trump did not end his threats against Canada and Mexico - the promised 25% tariffs on the two US neighbors were postponed for 30 days. In exchange, Canada and Mexico will put more effort into fighting crime and securing their borders with the United States.
Trump announced that he would negotiate with Beijing
On Monday, Donald Trump said that he would hold talks with his Chinese counterparts "probably within the next 24 hours". He previously justified tariff plans against China, Mexico and Canada by saying those countries were not doing enough to combat the production and export of illegal fentanyl. In an initial response to the US tariffs, China's Ministry of Commerce announced "countermeasures" and a lawsuit at the World Trade Organization (WTO) over the weekend.
The two largest economies are threatening to head for another trade war like the one in 2018 - a conflict Trump also provoked by imposing tariffs during his first term. That set in motion a process in which China and the US have been slapping increasingly higher tariffs on each other for two years. Higher US tariffs are putting pressure on China's export economy, as they make Chinese goods more expensive and therefore less competitive in the US market.
Trump also threatens the EU with tariffs
US President Donald Trump has also threatened the European Union with higher tariffs in the near future: "I don't have a timetable, but it will be very soon", Trump said recently. European Commission President Ursula von der Leyen has warned the US president against taking such a step.
"If we are deliberately treated unfairly or in an arbitrary manner, the European Union will react decisively", she announced the evening after a summit with the heads of government of the member states in Brussels. "We are ready." At the same time, she stressed that escalation must be prevented, as far as possible, through timely negotiations. If necessary, talks will also be held in this direction.