China has decided to impose tariffs on certain goods coming from the United States as a reaction to the US imposing tariffs.
This move escalates tensions between the two largest economies in the world.
As per Sky News, US imposed 10% tariffs on Chinese goods and China responded by introducing its own 10% tariffs.
Soon after the US tariffs took effect at 5 AM British time, China announced that it would tax US crude oil, agricultural machinery, large-engine cars and pickup trucks at the same rate.
China is also imposing a 15% tax on US coal and liquefied natural gas (LNG) and has also launched an investigation into Google.
Additionally, China is restricting the export of rare earth metals like tungsten, tellurium, ruthenium and molybdenum along with products related to ruthenium which are essential for clean energy technologies.
Since China controls much of the global supply of these metals this move could significantly impact industries that rely on them.
China’s new tariffs and export restrictions will take effect on Monday, February 10.
US President Donald Trump stated that he imposed tariffs on China because he believed Beijing had failed to stop the flow of fentanyl, a synthtic opioid into the US.
He also suggested that these tariffs might be just the beginning of further actions against China.
Trump had already announced plans to impose tariffs on the US’s three largest trading partners which includes China, Mexico and Canada.
However, the tariffs on Mexico and Canada were paused for the next 30 days.
