China hits back at Trump with tariffs on US exports

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China has slapped tariffs on imports of US LNG, coal, crude oil and farm equipment and announced an antitrust probe into Google as it retaliates against Donald Trump’s imposition of a blanket additional 10 per cent tariff on its exports.

China announced the tariffs, which ranged from between 10 and 15 per cent and will take effect on February 10, as the new US levy came into effect at midnight on Tuesday in the US, kicking off a second round of the trade war that began during Trump’s first term.

China also said it would impose tariffs on some auto exports from the US and announced additional export controls on rare metals.

Trump has accused China of not doing enough to curb the flow of the deadly opioid fentanyl and its precursors into the US.

The tit-for-tat between China and the US follows a reprieve for Mexico and Canada, which Trump had threatened to hit with 25 per cent tariffs. Those tariffs were delayed for a month following last-minute talks between Trump and Canadian prime minister Justin Trudeau and Mexican President Claudia Sheinbaum.

Trump had unnerved allies and investors with a weekend announcement of huge levies on Canada, Mexico and China.

Trump is expected to speak to China’s President Xi Jinping in the coming days, prompting hopes in markets that the two leaders will be able to hammer out a deal to remove the tariffs.

Announcing the tariffs, China’s finance ministry said the US levies violated World Trade Organization rules. “It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US,” the finance ministry said.

It said US coal and LNG exports would be hit with a 15 per cent tariff, while crude oil, agricultural machinery, large cars and pickup trucks would receive a 10 per cent tariff.

China’s commerce ministry said it was announcing export controls on tungsten and “25 rare metal products and technologies such as ammonium paratungstate” to be effective immediately.