Moments after President Donald Trump’s 10 percent tariffs on China took effect, Beijing retaliated by announcing a 15 percent tax on U.S. coal and liquefied natural gas and a 10 percent tax on crude oil, farm equipment, and some vehicles.
The tariffs on U.S. exports will take effect on February 10. Trump imposed the across-the-board tariffs on Chinese goods to punish Xi Jinping for not helping to stop the flow of fentanyl into the U.S.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” Trump said on Monday.
The Trump administration initially announced 25 percent tariffs on Mexico and Canada to ensure they help curb illegal immigration and fentanyl smuggling but the measures were ultimately paused on Monday for 30 days after those two nations each agreed to send troops to secure the northern and southern borders.
The reported deals materialized after Trump spoke with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, both of whom initially vowed to hit the U.S. with retaliatory tariffs of their own but later relented.
China, however, did not receive the same treatment. Trump is expected to speak with Xi later in the week, after which the tariffs on both sides could be temporarily paused if an agreement is made.
The new tariffs bring about a renewed trade war between China and the U.S., the world’s top two economies. Trump began setting tariffs on China during his first term to punish the nation for engaging in unfair trade practices.
“The U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization,” the Chinese finance ministry said. “It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the U.S.”
Beijing intends to file a legal complaint with the WTO over Trump’s action.
Concerns about rising prices for American consumers and businesses have mounted in recent days, as Trump ordered the tariffs, which he threatened to levy since winning the 2024 election.
“The President is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains,” the U.S. Chamber of Commerce said on Saturday.
While prices on Chinese goods are expected to rise, Trump assured Americans over the weekend that even though the tariffs may cause “some pain . . . it will all be worth the price that must be paid.” Rather than view the tariffs as the start of a trade war, the administration believes the measures are necessary to combat illegal immigration and the fentanyl crisis.