A new chapter opens in the trade conflict between the US and China: Beijing responds with further duties, 15% on coal and gas and 10% on oil

Beijing has responded firmly to the 10% US tariffs imposed on all imports from China, announcing a package of countermeasures that will hit US coal and liquefied natural gas (LNG) with rates of 15%, in addition to a further 10% tariff on petroleum, agricultural machinery and large-engine vehicles. The new rates will come into effect on February 10th, according to China's Ministry of Finance.

China also said it had filed a complaint atWorld Trade Organization (WTO) to protect their interests against the actions “unilateral and malicious” of the United States.

The Reason for the Tariffs and the Fentanyl Allegations

The United States justified the new tariffs quoting “national security issues“, including the alleged China's failure to curb trafficking fentanyl, a synthetic opioid responsible for 100.000 overdose deaths each year in the United States.
"THEChina has not done enough to stop the flow of fentanyl to the United States“, commented President Donald Trump, while anticipating the possibility of direct talks with Chinese President Xi Jinping in the coming days.

Temporary Truce with Mexico and Canada

While tensions with China remain high, administration Trump has decided to suspend for a month the 25% tariffs on imports from Mexico and Canada. In exchange, both countries agreed to tighten controls at their borders.
Mexico has sent 10.000 troops to fight illegal immigration and drug trafficking, while Canada has deployed new technologies and joint efforts to combat fentanyl smuggling.

The Google Investigation

In addition to the tariff countermeasures, the Chinese government also announced thelaunching an antitrust investigation against Google's platform, accused of violating China's anti-monopoly laws. The investigation was opened by State Administration for Market Regulation, the Chinese Antitrust, “in accordance with national regulations".
With Google already banned in China, the move is mostly symbolic and perhaps signals a broader intent to rein in big US tech companies.

Other American companies have also ended up in China's sights, such as PVH Corp. (brand controller) Calvin Klein e Tommy Hilfiger) and the biotechnology company Illumina Inc., both included in the list of "unreliable entities" that will no longer be able to trade or invest in the country.

The economic stakes

The latest escalation threatens to have global consequences. During the previous trade war, launched by Trump in his first term, international supply chains were disrupted and the global economy suffered severe setbacks.
Although China had promised to buy $200 billion in US goods a year to end the conflict, the pandemic has derailed those deals. US-China annual trade deficit He has reached 361 billion dollars last year, an unprecedented level.

Tensions between the two economic superpowers seem set to continue, with direct effects on global markets. The next talks between Trump and Xi Jinping will be crucial to understand whether there will be a détente or a further escalation of bilateral relations.