In response to U.S. President Donald Trump's 10% tariff on all Chinese goods, China has announced a 15% tariff on coal and liquefied natural gas (LNG) imports from the U.S. The Chinese Ministry of Commerce confirmed the move, as reported by Barron’s.
The tariff announcement follows Trump’s implementation of tariffs on Canada, Mexico, and China, as part of a campaign promise to impose stricter trade measures.Trump imposed 10% duties on Chinese goods entering the U.S., with the possibility of further actions. In response, China has expressed its intention to approach the World Trade Organization (WTO), citing violations of WTO rules.
While Trump has paused tariffs on Canada and Mexico after they agreed to bolster border security and combat drug cartels, no such measures have been taken with China, signalling continued trade tensions between the two nations.
According to a Reuters report, the U.S. government has identified China as the main supplier of precursor chemicals that are used to manufacture fentanyl by drug cartels in Mexico. In response, China stated that it has taken significant measures to combat the issue and is working to prevent the flow of these chemicals.
Trump stated, "China hopefully is going to stop sending us fentanyl, and if they're not, the tariffs will go substantially higher. China will be dealt with." Meanwhile, the White House announced that President Trump and Chinese President Xi may soon have a conversation to discuss ongoing trade and other bilateral issues. White House press secretary Karoline Leavitt confirmed, "It'll happen in the next couple of days," marking their first talks since Trump took office on January 20.
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Impact of U.S.-China trade tensions
China owes a lot of money to the U.S., nearly $1 trillion, which has been a big issue for President Trump. He thinks that by adding tariffs, Chinese products will cost more for U.S. shoppers, and they will end up paying more for things like toys and clothes.
If U.S. shoppers start buying more American-made products, it could hurt China’s export market. Despite the Chinese government’s efforts to improve the economy, it’s still struggling, and more government projects are increasing China’s debt.
This is affecting President Xi Jinping’s goal of making China more powerful than the U.S. and could hurt his plans for Taiwan and China’s influence in the Indo-Pacific.
Trump has also focused on stopping illegal immigration. While fewer people come illegally from China, he has warned all countries that they will be held responsible for their people entering the U.S. illegally.