China Imposes Tariffs and Investigates Google

According to the reports on Tuesday (4 February), China’s Ministry of Commerce announced new counter tariffs on various US products in response to the US’s tariff hikes. The Chinese government imposed a 15% tariff on coal and liquefied natural gas (LNG), along with a 10% tariff on crude oil, agricultural machinery, and large-displacement cars. These measures are part of China’s retaliation against what it sees as unfair trade practices by the US.

In its statement, China criticized the US’s unilateral tariff increase, calling it a violation of World Trade Organization (WTO) rules. The Chinese government argued that such actions would not solve the US’s economic issues but would instead harm normal trade relations between the two countries. The US’s 10% tariff increase on Chinese imports was scheduled to take effect on Tuesday, despite ongoing diplomatic efforts.

In addition to the tariffs, China’s State Administration for Market Regulation launched an antitrust investigation into Google. While the government did not directly link the investigation to the trade dispute, its announcement came just minutes after the US tariffs were implemented. This move signals China’s broader strategy to counteract US economic pressure beyond tariffs alone.

The escalating trade tensions highlight the growing economic rift between the two nations. As both countries take retaliatory actions, the global market may experience increased uncertainty. With planned talks between President Trump and President Xi Jinping, there remains a possibility for negotiation, but the current measures suggest a prolonged trade conflict.

References

• China Hits Back with New Tariffs and Google Probe Amid Trade Dispute with the US