China Strikes Back Over US Tariffs Imposed by Trump

China has announced its own set of tariffs on U.S. goods, in response to Washington imposing a 10 percent tariff on Chinese imports that took effect Tuesday.

Starting February 10, China said it will implement a 15 percent tariff on American coal and liquefied natural gas (LNG), and a 10 percent tariff on crude oil, agricultural machinery, and large-engine cars imported from the U.S.

Newsweek has contacted the White House for comment by email.

Why it matters

Trump signed an order Saturday seeking to levy significant tariffs on America's largest trading partners, citing concerns over fentanyl flow and trade deficits.

Tariffs are taxes on imported goods, typically paid by the importing businesses, which can then pass costs onto consumers through higher prices. It means Trump's move—and China's response—threatens a trade war that could hit the pockets of Americans.

What to know

In a statement on Tuesday, China's U.S. embassy said that the tariff increase announced by Trump "seriously violates [World Trade Organization] rules and is a typical act of unilateralism and trade protectionism."

Beijing was in turn imposing "completely justified and reasonable" measures and had also filed a lawsuit with the WTO opposing Trump's move, it added.

The statement also said China was tough on counternarcotics and had given support to the U.S. on the issue and as such needed to solve its problems with fentanyl "in an objective and rational war," instead of threatening countries with "arbitrary tariff hikes."

Trump's tariff decision "undermines the foundation of China-U.S. economic and trade cooperation," the Chinese embassy's statement added.

Craig Singleton, senior China fellow at the Foundation for Defense of Democracies (FDD), told Newsweek China's president Xi Jinping needed to project strength domestically in response to Trump's tariffs without hurting his country's economy.

Singleton believes this would involve leveraging state-owned enterprises and reserves to absorb tariff shocks while betting on U.S. businesses and consumers to resist prolonged economic battles.

"Expect incremental retaliation—like agricultural import bans or regulatory roadblocks—carefully calibrated to sting without sparking an all-out trade war," he said.

Singleton believed that China could respond to Trump by targeting areas where it dominates. These include advanced batteries, minerals, semiconductors, solar components, pharmaceuticals, and agriculture.

China could use these sectors to amplify costs for the U.S. while minimizing immediate domestic harm, showcasing China's strategic leverage in supply chains, he added.

What people are saying

China's embassy in Washington, DC: "China calls on the U.S. to correct its wrongdoings, maintain the hard-won positive dynamics in the counternarcotics cooperation, and promote the steady, sound and sustainable development of China-U.S. relationship."

Craig Singleton from the Foundation for Defense of Democracies told Newsweek: "Xi will likely play the long game with calibrated defiance—retaliating just enough to save face while banking on U.S. divisions and Trump's tariffs burning out before China does. His message? Resilience over retaliation, patience over provocation."

What happens next

Beijing has called on Washington to enter negotiations and "meet China halfway" suggesting that it is interested in negotiations and Trump and Xi are scheduled to speak later this week, according to the White House.

Update 02/04/25, 5 a.m. ET: This article has been updated with further information.