China retaliates with new tariffs amidst escalating trade tensions
On Tuesday, the Chinese Ministry of Finance announced that it will impose a 15% tariff on coal and liquefied natural gas imports from the United States. In response to Washington's 10% tariffs, these retaliatory measures will also include higher tariffs on crude oil and agricultural machinery imports.
A 15% tariff will be imposed on coal and liquefied natural gas (LNG), the Ministry of Finance in Beijing stated, adding that it will come into effect on February 10.
Additionally, 10% tariffs on crude oil imports, agricultural machinery, large-engine-capacity vehicles, and so-called pickups were announced.
The Chinese government's decision came after Washington announced on February 1 that 10% fees would be imposed on Chinese imports. According to the Chinese Ministry of Commerce, these fees "seriously violate the rules of the World Trade Organization (WTO)."
Trump changes decision on tariffs for Mexico and Canada
Let's recall that Donald Trump signed an order on Saturday that provides for a 25% tariff on goods from Canada and Mexico, except petroleum products, which are subject to a lower 10% tariff. The President of the USA also decided to implement 10% tariffs on goods from China.
The new rates were originally supposed to take effect on Tuesday, February 4. However, the president decided to postpone the introduction of tariffs on Mexico and Canada by a month.
Both Canada and Mexico have committed to increasing border protection and cooperating with the USA against fentanyl smuggling.
"Tariffs will be very high"
Trump also announced that he would speak with his Chinese counterpart, Xi Jinping, within 24 hours about a potential trade agreement. He threatened to increase the 10% tariffs imposed on Chinese products if an agreement was not reached.
The recent actions were just "the opening salvo". "If we can’t make a deal with China, then the tariffs will be very, very substantial," he stated.
