Days after Donald Trump waged a trade war with China, Beijing, in a tit-for-tat move, imposed counter tariffs on a range of US goods. Not stopping at tariffs, China also launched an investigation into Google over alleged anti-trust violations.
China’s foreign ministry on Tuesday announced a 15 per cent tariff on US coal and LNG, along with an additional 10 per cent tariff on crude oil, farm equipment, and large-displacement cars.
“The US’s unilateral tariff increase seriously violates the rules of the World Trade Organisation. It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the US,” the official statement reads.
This move follows the implementation of the US’s 10 per cent tariffs on Chinese imports.
China Investigates Google for Anti-Trust Violations
In a retaliatory measure, China also announced an anti-trust investigation into US tech giant Google, according to the State Administration for Market Regulation. While the statement provided no further details, it is notable that Google’s search engine is blocked in China, though the company works with local partners, including advertisers.
ALSO READ: US deportation: Military aircraft with 205 illegal Indian immigrants aboard heads for Amritsar
China has also introduced export controls on tungsten-related materials and added PVH Corporation, the owner of Calvin Klein, and Illumina Inc. to its unreliable entity list.
The offshore yuan fell 0.3 per cent to 7.3340 in the afternoon following the tariff imposition, Bloomberg reported. Meanwhile, China’s onshore market remained closed for the Lunar New Year holiday. Currencies tied to China’s economy also took a hit, with the Australian and New Zealand dollars dropping by at least 0.8 per cent.
Trump’s Response and Future Implications
Over the weekend, Donald Trump cited Beijing’s failure to curb the flow of illegal drugs into the US as a reason for his tariff measures. His order includes provisions for higher tariffs if China retaliates with its own trade restrictions.
ALSO READ: ‘They mean us harm’: Trump singles out India, Brazil, China; says they are ‘tremendous tariff-makers’
As tensions escalate, the economic impact of the ongoing trade war between the US and China remains uncertain, with both nations ramping up countermeasures in a high-stakes battle for economic dominance.
