China’responds’ to import taxes imposed by the US

China'responds' to import taxes imposed by the US

China’responds’ to import taxes imposed by the US

Beijing acted right away, only minutes after Mr. Trump imposed 10% import duties on Chinese goods.

China’s Ministry of Finance has now announced import duties on US goods starting February 10

China’s Ministry of Finance has now stated that it will apply import taxes on US goods beginning February 10. Coal and liquefied natural gas (LNG) will be subject to a 15% tax. Crude oil, farm machinery, and certain types of automobiles will be subject to a 10% tax. China’s Ministry of Commerce and Customs has also stated that it will restrict the export of a number of critical elements such as tungsten, tellurium, ruthenium, and molybdenum “to protect national security”.

The move came just minutes after US import taxes on Chinese goods went into force. According to an executive order signed by US President Donald Trump this weekend, all Chinese imports would face a 10% import charge beginning February 4. The reason is that this country has failed to prevent fentanyl importation into the United States.

China’responds’ to import taxes imposed by the US

On February 3, Mr. Trump warned that he could hike tariffs on China by more than 10% and would meet with Chinese officials on February 4 or later. “Hopefully, China will halt the flow of fentanyl into the US. If not, import duties will rise dramatically,” President Trump stated.

China replied to import taxes with similar policies

Chinese officials also announced that they would investigate the search engine giant Google for potential antitrust offenses. The investigation will be carried out by the State Administration for Market Regulation.

China is the US’s largest trading partner. According to figures issued by Chinese customs last month, bilateral commerce is estimated to reach 4.898 trillion yuan ($668 billion) by 2024. However, the US has a massive trade deficit with China, which has been a cause of anger in Washington for years. Last year’s deficit totaled $361 billion.

During his first term, President Trump initiated a two-year trade battle with China, placing 25% tariffs on over $300 billion in Chinese imports. China replied with similar policies and stopped purchasing many American agricultural products. This interrupted the worldwide supply chain, harming the global economy.