The U.S. announced this week that it is imposing an additional 10 percent tariff on certain imports from China, while China has responded with additional targeted tariffs.
“Access to the American market is a privilege,” the White House said in its announcement. “The United States has one of the most open economies in the world, and the lowest average tariff rates in the world. … Tariffs are a powerful, proven source of leverage for protecting the national interest. President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.”
The tariffs went into effect on Tuesday, February 4, 2025.
The new 10 percent tariffs are in addition to tariffs imposed by the first Trump administration in 2018 and 2019, which were kept in place throughout the Biden administration. The Biden administration in May 2024 announced additional tariffs on Chinese goods, meaning U.S. tariffs are, in total, impacting the imports of nearly $400 billion of Chinese goods.
“The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis,” the White House said. “Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations.”
China’s response
China said it would implement a 15 percent tariff on U.S. coal and liquefied natural gas products as well as a 10 percent tariff on U.S. crude oil, agricultural machinery, and large engine cars from the U.S. The tariffs are slated to take effect on February 10, 2025.
China announced in a statement that it believes the U.S. tariffs violate the rules of the World Trade Organization and has asked the body to initiate a dispute settlement process. This would include a 60-day period for the two countries to resolve any differences, and if not possible, the case could be brought before a three-judge panel based in Geneva, Switzerland.
Additionally, China announced further export controls on critical minerals, including tungsten, tellurium, bismuth, molybdenum, and indium.
Finally, China announced it is investigating Google on suspicion of violating its antitrust laws and placed two American companies on its “unreliable entities” list, including PVH Group (which owns Calvin Klein and Tommy Hilfiger) and Illumina, a biotechnology company.
