The People’s Republic of China –PRC—will effectively from February 10 impose 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement automobiles and pickup trucks.
This is coming after United States levies on all Chinese went into effect on Tuesday, the country is the only one to go ahead after President Donald Trump paused 25% tariffs he had announced on goods from Canada and Mexico.
The Customs Tariff Commission of the State Council, China’s Cabinet, in a statement said: “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.”
In addition, Beijing announced an investigation into Google for alleged anti-trust violations, and export controls on items related to tungsten and other rare earth elements.
PRC has also restricted the ability of some U.S. owned company like the owner of Calvin Klein and Tommy Hilfiger from operating in the country by adding it to the “unreliable entity list.”
Trump announced the 10% China tariff on Saturday along with 25% tariffs on goods imported from Canada and Mexico, citing border security, as well as the illicit international flow of drugs such as fentanyl.
Though the Canadian and Mexican tariffs have been paused for 30 days after talks with those countries’ leaders, no such deal appears to have been struck with China.
Trump is expected to speak with Chinese leader Xi Jinping “in the next couple of days,” White House Press Secretary Karoline Leavitt said Monday
Mainland Chinese markets remain closed for the Lunar New Year holiday. Other Asia-Pacific markets were up earlier Tuesday on news that the Canadian and Mexican tariffs had been put on hold, CNBC reported.
Beijing said it had referred the U.S. tariff measures to the World Trade Organization “to safeguard its legitimate rights and interests.”
The additional U.S. tariff “seriously violates WTO rules and is an egregious act, representing typical unilateralism and trade protectionism,” a spokesperson for the Chinese Ministry of Commerce said.
The United States has blocked the appointments of appellate judges to the World Trade Organization since Trump’s first term, leaving it largely unable to mediate international trade disputes. But China could still use a lawsuit to gather international support against the U.S. tariffs, NBC reported
“The U.S. approach severely undermines the rules-based multilateral trading system, damages the foundation of Sino-U.S. economic and trade cooperation, and disrupts the stability of global industrial and supply chains,” China’s commerce ministry said.
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