This Wednesday, February 4, 2025, China announced a series of economic measures, including the imposition of new tariffs on several American products and the opening of an antitrust investigation into Google.
These actions come as US President Donald Trump applies a 10% tax on Chinese products, intensifying trade tensions between the two economic giants.
The Chinese Ministry of Commerce (MOFCOM) has clarified the new measures taken by Beijing. The authorities announced a 15% tariff on coal and liquefied natural gas (LNG) products, as well as a 10% tariff on products such as crude oil, agricultural equipment and heavy-duty cars. These decisions follow the recent imposition of additional taxes on Chinese imports by the United States.
In a statement, the Chinese ministry denounced “the unilateral increase in tariffs by the United States, which seriously violates the rules of the World Trade Organization (WTO)”. Beijing added that these measures risk damaging economic cooperation between the two countries and disrupting the stability of global supply chains.
This latest escalation in the Sino-American trade war is part of a series of reciprocal measures. Tensions began in 2018, when Washington imposed tariffs on several Chinese products. In response, Beijing applied similar taxes on American goods. Today, this tariff war continues, with tariff hikes on both sides.
Donald Trump’s 10% tariff on Chinese products is now in effect. Although the American president has expressed his intention to meet his Chinese counterpart, Xi Jinping, to discuss the situation, negotiations are struggling to calm the crisis.
According to figures released by the US government, trade between China and the United States reached $518 billion in the first 11 months of 2024. However, the trade balance remains largely in China’s favor, with a surplus of $269 billion. This economic imbalance is one of the main points of friction between the two nations.
Sino-American trade has a significant impact on the global economy. Tariffs not only affect companies in both countries, but also disrupt supply chains worldwide. In the US, consumers are facing higher prices on many Chinese products, while Chinese companies are having to adapt to a less favorable US market.
Beijing insists that there is “no winner in a protracted trade war”. According to several economic experts, this situation could slow global growth and increase uncertainty in international trade relations.
The trade war between China and the United States seems far from resolved. Both powers continue to adopt economic measures that affect not only their own economies, but also world trade. As China imposes new tariffs and opens an investigation into Google, the Trump administration remains determined to counter what it sees as unfair trade practices. The evolution of this conflict could redefine economic relations between these two superpowers, and have lasting repercussions on the global economy.
