Tue Feb 04 07:19:11 UTC 2025: ## China Retaliates Against US Tariffs with Targeted Measures

**BEIJING/WASHINGTON —** A new round of trade tensions erupted between the US and China on Tuesday, as both countries levied tariffs on each other’s goods. President Donald Trump imposed a 10% tariff on a range of Chinese goods, prompting an immediate and targeted response from Beijing.

China’s Ministry of Finance announced retaliatory tariffs of 10% and 15% on various US products, including coal, liquefied natural gas (LNG), oil, and agricultural equipment. Further escalating the situation, China’s State Administration for Market Regulation launched an antitrust investigation into Google, citing alleged violations. Additionally, two US companies, PVH Corp. (owner of Calvin Klein and Tommy Hilfiger) and Illumina Inc. (a gene sequencing company), were added to a Chinese blacklist, and new export controls were implemented on tungsten-related materials.

China’s actions, while retaliatory, appeared calculated to minimize economic disruption domestically. While the offshore yuan weakened and some Asian currencies adjusted, the overall market reaction was less dramatic than anticipated, possibly due to speculation of further Chinese economic stimulus and Trump’s stated intention to speak with President Xi Jinping.

Analysts described China’s response as “measured and appropriate,” highlighting that the targeted nature of the tariffs and the investigation into Google avoid excessively harming the Chinese economy while sending a strong message to the US. The relatively small percentage of US LNG and coal imported by China further suggests a degree of restraint.

The conflict stems from Trump’s claim that China has failed to prevent the flow of illegal drugs. The newly imposed tariffs include escalation clauses, suggesting further retaliation if China continues its countermeasures. While both countries have recently engaged in high-level talks, this latest development casts a shadow over their improving relationship, raising concerns about a potential escalation of trade tensions. The possibility of a quick resolution through direct communication between Trump and Xi remains uncertain.

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