The ongoing trade conflict between the US and China intensifies as China announces new tariffs on US coal and natural gas in response to American trade policies.
China Implements Tariffs on US Coal and Gas as Trade War Escalates
China Implements Tariffs on US Coal and Gas as Trade War Escalates
Retaliatory tariffs to impact various US imports effective next week.
China has officially declared new tariffs targeting U.S. imports, including coal and natural gas, as part of a retaliatory strategy against U.S. trade policies. These tariffs will take effect from the upcoming Monday. Following President Trump’s imposition of a 10% tax on nearly all Chinese imports, China retaliated with a 15% tariff on U.S. coal and liquefied natural gas, alongside a 10% tariff on crude oil, agricultural machinery, pickup trucks, and large-engine vehicles.
In response to the tariffs, China lodged a complaint with the World Trade Organization (WTO), asserting that the U.S. is violating international trading standards. President Trump has justified the tariffs by citing trade deficits as well as issues surrounding the opioid crisis, claiming that China’s production of fentanyl-related chemicals contributes to the epidemic. China has countered this assertion, stating that the opioid crisis is a domestic issue for the U.S.
Alongside these new tariffs, China has expanded its “unreliable entity” list to include certain American firms, including PHV Corp and the biotechnology company Illumina, accusing them of discriminatory practices against Chinese businesses. Sanctions under this classification could result in fines or the revocation of work visas for foreign employees of the affected companies.
Moreover, Beijing plans to restrict the export of 25 essential minerals, which are crucial for numerous industries. Among these are tungsten, essential in aerospace, tellurium, vital for solar panel production, and molybdenum, which reinforces steel alloys.
The current trade war has seen both nations impose tariffs on hundreds of billions of dollars' worth of goods, complicating trade relations. Trump has also temporarily suspended the proposed 25% tariffs on goods from Mexico and Canada for 30 days in light of recent negotiations regarding border security and efforts to combat fentanyl trafficking. However, the long-term implications of these tariff strategies remain uncertain, leading to concerns that businesses may reconsider investments and operations in the U.S. market amidst the ongoing trade disputes.
In response to the tariffs, China lodged a complaint with the World Trade Organization (WTO), asserting that the U.S. is violating international trading standards. President Trump has justified the tariffs by citing trade deficits as well as issues surrounding the opioid crisis, claiming that China’s production of fentanyl-related chemicals contributes to the epidemic. China has countered this assertion, stating that the opioid crisis is a domestic issue for the U.S.
Alongside these new tariffs, China has expanded its “unreliable entity” list to include certain American firms, including PHV Corp and the biotechnology company Illumina, accusing them of discriminatory practices against Chinese businesses. Sanctions under this classification could result in fines or the revocation of work visas for foreign employees of the affected companies.
Moreover, Beijing plans to restrict the export of 25 essential minerals, which are crucial for numerous industries. Among these are tungsten, essential in aerospace, tellurium, vital for solar panel production, and molybdenum, which reinforces steel alloys.
The current trade war has seen both nations impose tariffs on hundreds of billions of dollars' worth of goods, complicating trade relations. Trump has also temporarily suspended the proposed 25% tariffs on goods from Mexico and Canada for 30 days in light of recent negotiations regarding border security and efforts to combat fentanyl trafficking. However, the long-term implications of these tariff strategies remain uncertain, leading to concerns that businesses may reconsider investments and operations in the U.S. market amidst the ongoing trade disputes.
