Tue, 04 Feb 2025

Five ways China is hitting back against US tariffs

China has set out a series of measures to kick in next week after the US introduced 10% tariffs on imports from the country.

* China has responded to the US's introduction of 10% tariffs on all Chinese imports by imposing its own retaliatory taxes and measures.
* Beijing has set out to target specific American goods, including: + 10% tariff on coal and liquefied natural gas (LNG) + 15% charge on crude oil + 10% tariff on agricultural machinery, pick-up trucks, and some large cars
* The impact of the tariffs on China's economy is likely to be minimal due to its diversified energy sources and trade relationships.
* China has also announced non-tariff measures, including: + An anti-monopoly investigation into US tech giant Google + Adding PVH (Calvin Klein and Tommy Hilfiger owner) to its "unreliable entity" list + Imposing export controls on 25 rare metals
* The US has its own "entity list", which bars certain organisations from buying products from US companies without approval.
* The trade war is expected to continue, with both countries imposing measures that aim to send a message rather than inflict significant economic damage.
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