Donald Trump has imposed tariffs on China, triggering swift retaliation from Beijing. On Tuesday, China's commerce ministry responded by pledging to implement "countermeasures" and file a legal case against the US at the World Trade Organization. This move marks a significant escalation in the ongoing trade conflict between the two economic superpowers.
China's response includes imposing export controls on critical minerals such as tungsten, tellurium, ruthenium, molybdenum, and related items. This decision could impact several industries reliant on these materials. Additionally, China's finance ministry announced retaliatory tariffs on various US exports. These include a 15% duty on coal and liquefied natural gas, as well as a 10% tariff on crude oil, farm equipment, large-displacement vehicles, and pickup trucks.
Popular Chinese retailers like Shein and Temu have previously benefited from an exemption allowing them to sell low-cost goods in the US. However, the US has now scrapped this exemption for exports valued at less than $800. In contrast to its firm stance on China, the US has delayed threatened duties on Canada and Mexico, following last-minute negotiations with both countries.
Canada is taking its own measures in response to the evolving situation. It has announced a $1.3 billion border plan, appointed a fentanyl czar, and designated cartels as terrorists. Meanwhile, Donald Trump maintains that tariffs are a "very powerful" tool to bolster the US economy and achieve his objectives. Despite this assertion, he postponed imposing 25% tariffs on Mexico after a dialogue with Mexican President Claudia Sheinbaum.
China's commerce ministry has also targeted US companies PVH Group and Illumina Inc by adding them to its unreliable entity list. This designation opens these companies to potential restrictions or penalties. PVH Group is known for its ownership of brands like Tommy Hilfiger and Calvin Klein, while Illumina is a biotech firm specializing in genomic sequencing, recently partnering with Nvidia on AI health technologies.
Economists have raised concerns over Trump's tariff strategy, warning that it may lead to increased prices for millions of Americans. As the trade tensions continue to unfold, both nations seem steadfast in their positions.
"In all cases, they all wanna make deals." – Donald Trump