China will retaliate with up to 15% additional tariffs on US imports selected from February 10th

China announced a series of retaliation measures against the United States on Tuesday shortly after US tariffs came into effect on Chinese goods, raising concerns about a broader trade war between the two largest economies of the world.

China’s Treasury Ministry said on Tuesday that it will add additional fees for coal and liquefied natural gas imports from the US and 10% of duties for US crude oil, agricultural machinery and certain vehicles starting from February 10. .

China, according to CNBC translation of Chinese, says that additional taxes by the US are “seriously violating the rules of the World Trade Organization… normal bilateral economic and trade activities I’ll destroy it.” He repeated.

In another statement on Tuesday, China’s Ministry of Commerce and customs officials announced that export controls will be imposed on a variety of items and technologies related to certain important minerals, such as tungsten, tellurium, ruthenium, molybdenum and ruthenium. .

The announcement of China’s tariffs is something of a “symbolic move for now,” says Louise Lou, the Chinese lead economist at Oxford Economics.

However, Lou warned that the second US-China trade war is “clearly in the early stages,” and “very high possibility” of more tariffs from both countries “They warned that they viewed him.

China’s offshore yuan has changed little against the US dollar following the announcement. Mainland markets, which were closed due to a week-long month’s New Year holidays, will resume trading on Wednesday.

The state control of China’s market regulations also said it has decided to begin an investigation of alphabetAs an American technology giant, Google was suspected of violating the country’s anti-mass laws.

Google pulled out internet and search engine services in China in 2010, but still has several tasks focused on Chinese companies seeking to deploy advertising on Google platforms overseas.

“These moves are warnings that China intends to harm US interests if necessary, but still seeks to give China the option to retreat,” said Capital Economics Head of China Economics. Julian Evans Pritchard said in a memo.

Pritchard acknowledged that China’s proposed tariffs could be postponed or cancelled before they come into effect next Monday, and that Google’s investigation could end without penalties.

US President Donald Trump on Monday agreed to a 30-day hiatus on the implementation of 25% tariffs on imports from Canada and Mexico.

However, China did not have that reprieve.

“The comprehensive geoeconomic aspects of US-China trade means that solutions will be much more difficult than in Mexico and Canada,” says Mizuho Bank, head of Asian macro research. Vishnu Bharasan said.

When Trump began his second term, he ordered the administration to investigate compliance with Beijing’s trade contracts during his first presidency in 2020. The final results of the assessment will be submitted to Trump by April 1 and could be set for further tariff action, the economist said.

White House spokesman Caroline Leavitt reportedly said on Monday that Trump and Chinese President Xi Jinping could speak “in the coming days.”

On Saturday, Trump signed an order that imposes a long-standing 10% tariff on China, in addition to existing tariffs of up to 25% on Chinese goods collected during his first presidency.

Goldman Sachs economist said in a report Monday that it will cut China’s true gross domestic product growth by 50 basis points this year, with a stronger domestic stimulus to offset the impact from rising tariffs He said it has strengthened its demand for measures.

Investment banks expect China’s true GDP growth to slow to 4.5% this year, with domestic consumer inflation rising by just 0.4% due to low demand and the long-term real estate crisis.

Amendment: Trump on Saturday signed an order that imposes a long-standing 10% tariff on China. An earlier version misstates the action.