Trade War Escalates: China Imposes Tariffs on US Imports, Puts Companies on Notice
China’s Measured Response to US Tariffs
China has imposed targeted tariffs on American imports, including a 15% levy on US coal and LNG, and 10% on crude oil, farm equipment, and big-engine sedans shipped to China from the US. The move is seen as a measured response to the sweeping duties on Chinese imports imposed by President Donald Trump.
US Companies on Notice for Possible Sanctions
China has also put several US companies, including Google, on notice for possible sanctions. The companies, including PVH Corp, the holding company for brands such as Calvin Klein, and US biotechnology company Illumina, have been added to a list for potential sanctions.
Export Controls on Some Metals
China has also imposed export controls on some metals, including tungsten, which are critical for electronics, military equipment, and solar panels. The 10%-duty China announced on electric trucks imported from the US could apply to Elon Musk’s Cybertruck, a niche offering Tesla has been promoting in China.
Trade War in Early Stages
The trade war is in its early stages, and the likelihood of further tariffs is high, according to Oxford Economics. The firm downgraded its China economic growth forecast due to the trade tensions.
Trump’s Next Target: EU or Mexico?
Trump has suggested that the European Union would be his next target for tariffs, but has not specified when. The EU’s executive European Commission, led by Ursula von der Leyen, has said it will be ready for tough negotiations and will always protect its own interests.
Conclusion
The trade war between the US and China continues to escalate, with both sides imposing tariffs and taking retaliatory measures. The global economy is likely to feel the impact of these tensions, which could lead to a protracted trade war. The outcome of these negotiations is uncertain, and it remains to be seen whether the two sides can reach a deal to avert further escalation.
Frequently Asked Questions
Q: What are the tariffs that China has imposed on US imports?
A: China has imposed a 15% levy on US coal and LNG, and 10% on crude oil, farm equipment, and big-engine sedans shipped to China from the US.
Q: Which US companies have been put on notice for possible sanctions?
A: China has put PVH Corp, the holding company for brands such as Calvin Klein, and US biotechnology company Illumina on a list for potential sanctions.
Q: What is the likelihood of further tariffs?
A: The trade war is in its early stages, and the likelihood of further tariffs is high, according to Oxford Economics.
Q: Who is the next target for US tariffs?
A: Trump has suggested that the European Union would be his next target for tariffs, but has not specified when.