In a major escalation of trade tensions, China has imposed retaliatory tariffs on American imports after the Trump administration levied a 10% tariff on Chinese goods. This latest news marks a turning point in the ongoing US-China trade war, affecting global markets and industries worldwide.
China’s Response: New Tariffs and Export Controls
On Tuesday, China’s Ministry of Finance announced fresh duties targeting American products, effective February 10. The new measures include:
15% Tariff: Applied to specific types of coal and liquefied natural gas.
10% Tariff: Imposed on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.
Additionally, China’s Ministry of Commerce has introduced export controls on tungsten-related materials, widely used in industrial and defense applications, and tellurium, essential for manufacturing solar cells. These restrictions may have far-reaching implications for industries reliant on these resources.
US Companies in China’s Crosshairs
Beijing is not just imposing tariffs—it is also cracking down on American corporations. The Chinese Ministry of Commerce has added two major US firms to its “unreliable entities” list:
Illumina: A leading biotech company.
PVH Group: The parent company of Calvin Klein and Tommy Hilfiger.
These companies have been accused of violating standard market trading principles, signaling a tougher stance on foreign businesses operating in China.
China Launches Antitrust Probe into Google
In another bold move, China’s State Administration for Market Regulation has launched an antitrust investigation into Google for alleged market violations. While Google has minimal operations in China due to strict internet regulations, this development highlights Beijing’s intent to challenge major US tech firms.
Why Did the US Impose New Tariffs?
The Trump administration’s 10% tariff on Chinese imports took effect this week, covering a broad range of goods. Washington argues that these measures are necessary to counter China’s unfair trade practices, but Beijing has dismissed the tariffs as damaging to global trade stability.
In response, China has filed a complaint with the World Trade Organization (WTO), arguing that US actions violate international trade norms and harm the global economy.
How This Trade War Impacts Global Markets
The US-China trade war continues to disrupt global trade networks, with major implications for businesses and economies worldwide, including Pakistan and India. Experts warn that these escalating tensions could lead to:
Supply chain disruptions, increasing costs for manufacturers and consumers.
Market volatility, impacting investments in global stock exchanges.
Higher prices on essential goods, affecting developing economies like Pakistan.
Pakistan’s Economic Stake in the Trade War
For Pakistan, which maintains strong trade ties with both the US and China, these developments are particularly significant. As the latest updates unfold, Pakistan's industries reliant on imported machinery, technology, and raw materials may experience price fluctuations. The trade war could also affect Pakistan’s exports if global demand shifts due to rising costs.
What’s Next in the US-China Trade War?
As tensions rise, businesses and governments worldwide are watching closely for the next move. Will diplomatic negotiations ease hostilities, or will further economic retaliation escalate the conflict?
Stay informed with the latest news and latest updates on the evolving US-China trade war.
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