In response to the U.S. government's announcement of 10% additional tariffs on all Chinese goods, China announced additional tariffs on certain imported goods originating from the U.S. starting from February 10, including a 15% tariff on coal and liquefied natural gas (LNG) and a 10% tariff on crude oil, agricultural machinery, high-emission cars, and pickup trucks. This decision was made in accordance with the corresponding laws and regulations, as well as international legal principles, the Customs Tariff Commission of the State Council announced. Eight products imported from the U.S. will face additional duties of 15% and 72 products will be covered by a 10% tariff hike. In 2024, China’s imports of products covered by the new tariffs from the U.S. reached USD13.9 billion, which accounted for 8.5% of all Chinese imports from the U.S. that year.
The U.S. government's decision to impose additional tariff on all Chinese goods is a unilateral tariff increase by the U.S., which seriously violates the rules of the World Trade Organization (WTO), said the Customs Tariff Commission of the State Council, noting that the move not only fails to address the U.S. fentanyl issue – which was used as an excuse to impose the tariffs – but also undermines normal economic and trade cooperation between China and the U.S. China has filed a case with the WTO dispute settlement mechanism to defend its legitimate rights and interests. A MOFCOM Spokesperson added that the U.S. moves severely undermine the rules-based multilateral trading system, disrupt the foundation of China-U.S. economic and trade cooperation, and destabilize global supply chains.
The U.S. has repeatedly prioritized unilateralism over multilateralism, drawing strong condemnation from many WTO members, the MOFCOM Spokesperson said, urging the U.S. to rectify its wrongful actions immediately. As a staunch supporter and key contributor to the multilateral trading system, China is willing to work with other WTO members to jointly address the challenges posed by unilateralism and trade protectionism, in order to ensure the orderly and stable development of international trade, the MOFCOM Spokesperson further noted, the Global Times reports.
Separately, the State Administration for Market Regulation (SAMR) launched an antitrust probe into Google, the South China Morning Post adds. Most Google services – including search, Gmail, and Google Maps – are not available in China, but the company has maintained some operations in the country, particularly in advertising. The antitrust investigation into Google is unusual given the company’s marginal presence in China’s domestic internet service market. Google has not disclosed its revenue from China, but U.S. tech news outlet The Information in 2019 reported that the company earned more than USD3 billion in sales to China-based advertisers in 2018, an increase of 60% year-on-year. China’s antitrust watchdog is also laying the groundwork for a potential investigation into Apple’s policies and the fees it charges app developers.
The Chinese government also put American clothing company PVH – parent company of Calvin Klein and Tommy Hilfiger – and biotechnology company Illumina on its unreliable entity list. “The above two entities have interrupted normal transactions with Chinese enterprises and adopted discriminatory measures against them, seriously undermining their legitimate rights and interests,” MOFCOM said.
Da Wei, Director of Tsinghua University’s Center for International Security and Strategy in Beijing, said China’s moves were “measured and restrained”, as U.S. coal and liquefied natural gas accounted for only 1% and 3% of China’s total imports, respectively. This would signify that China, while mildly retaliating, is still keeping the door open to negotiations. Beijing has long called for dialogue to solve trade disputes and warned that there would be no winners in tariff wars. But uncertainties linger because of tense bilateral relations, a fierce tech and military rivalry between the U.S. and China, and Trump’s unpredictability.
This overview is based on reports by the Global Times, the China Daily and the South China Morning Post.
