China Slaps 15% Tariffs on US Coal & LNG

AFP

Beijing: China announced on Tuesday that it would impose tariffs of 15 percent on US coal and liquefied natural gas (LNG) imports in response to the United States’ (US) 10 percent levies on Chinese goods.

Additionally, China unveiled tariffs of 10 percent on US imports including crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. These measures were taken in retaliation for what China called Washington’s “unilateral tariff hike” over the weekend.

US President Donald Trump had earlier announced broad tariffs against major trading partners, including Canada and Mexico, with additional duties of 10 percent on Chinese goods already facing tariffs. Trump stated that the tariffs were aimed at punishing countries for not stopping the flow of illegal drugs, including fentanyl, into the US.

Beijing condemned the US decision, claiming it violated World Trade Organization (WTO) rules and failed to resolve any of America’s internal issues, further disrupting economic and trade relations between the two countries.

China’s tariffs, set to take effect next Monday, were announced after Trump revealed plans for a call with Chinese President Xi Jinping within the next 24 hours.

In the meantime, Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau reached last-minute deals with Trump to strengthen border measures against migrant and fentanyl flows, prompting a 30-day pause on threatened tariffs.

News of the pause sent Asian markets soaring, although gains were partially trimmed once China unveiled its retaliatory measures.

Trump had earlier eased tensions with Mexico by pausing tariffs after “very friendly” discussions with Sheinbaum, who agreed to send 10,000 troops to the U.S.-Mexico border. Similarly, Trump and Trudeau reached agreements to ensure border security and combat drug trafficking, with Canada deploying nearly 10,000 officers to assist in securing its border.

Despite the easing of tensions with Mexico and Canada, the situation remained fraught, especially with China still targeted by the US tariffs.

The White House emphasized that the US was engaged in a “drug war,” not a “trade war,” as National Economic Council Director Kevin Hassett insisted that the trade measures were designed to address the flow of illicit drugs into the US.

However, Canada’s frustration with US actions was evident. Canadians had shown their discontent by boycotting US products, cancelling holidays, and even booing the US national anthem at sporting events.

Ontario, Canada’s most populous province, retaliated by banning U.S. firms from bidding on government contracts worth billions and cancelled a deal with Elon Musk’s Starlink.

Trump’s rhetoric on Canada reached new heights, with the US president again suggesting that Canada should become the 51st state. Meanwhile, in Mexico, Trump continued to pressure the government to curb undocumented migration to the US.

Trump has escalated his tariff strategy in his second term, claiming that foreign exporters would bear the cost of these tariffs without impacting American consumers, though many experts disagree. Despite his assurances, Trump acknowledged that Americans could still experience economic “pain” from the measures.