Beijing, February 4, 2025: China has announced retaliatory tariffs on US imports, imposing a 15% duty on coal and liquefied natural gas (LNG) following Washington’s decision to levy a 10% tariff on Chinese goods.
In a statement on Tuesday, China’s Ministry of Finance also declared a 10% tariff on US crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. The move, it said, was a direct response to the “unilateral tariff hike” by the US, which it accused of violating World Trade Organization (WTO) rules, disrupting global trade, and failing to address its own economic issues.
The tariffs, set to take effect on February 10, were announced just hours after US President Donald Trump revealed plans for a phone call with Chinese President Xi Jinping within the next 24 hours.
On Saturday, Trump expanded his trade crackdown, imposing an additional 10% tariff on Chinese imports, adding to existing duties. Canada and Mexico were also targeted under broader measures meant to pressure countries into curbing undocumented migration and drug smuggling, particularly fentanyl. However, on Monday, Trump suspended tariffs on Mexico and Canada for 30 days following concessions on border security and crime enforcement.
China’s response appears measured rather than escalatory, according to Julien Chaisse, a professor of international economic law at City University of Hong Kong.
“The choice of a February 10 start date is strategic, allowing time for potential negotiations between Trump and Xi before the tariffs take effect. This leaves room for adjustments, exemptions, or reciprocal gestures that could defuse tensions,” Chaisse explained.
During his first term, Trump launched a bruising two-year trade war with China, citing its massive US trade surplus. Both sides imposed hundreds of billions of dollars in tariffs, disrupting global supply chains and slowing economic growth.
To resolve the dispute, China agreed in 2020 to purchase an additional $200 billion in US goods. However, the deal collapsed due to the COVID-19 pandemic, and China’s trade surplus with the US widened to $361 billion, according to Chinese customs data released last month.
Now, Trump is warning of even harsher tariffs unless China takes stronger action against fentanyl exports. Beijing, however, has dismissed this as a US domestic issue, vowing to challenge the tariffs at the WTO while keeping the door open for negotiations.
