China will impose a 15 percent tariff on imports of coal and liquefied natural gas (LNG) from the United States in retaliation for the 10 percent tariffs the US has placed on Chinese goods.
China Imposes 15% Tariffs on US Coal and LNG in Retaliation for US Levies
China has announced that it will impose tariffs of 15 percent on coal and liquefied natural gas (LNG) imports from the United States in response to the 10 percent tariffs that Washington recently imposed on Chinese goods.
In a statement released on Tuesday, China’s Ministry of Finance also revealed that additional 10 percent tariffs would be applied to US imports including crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks.
These new measures were presented as a direct reaction to what China calls the “unilateral tariff hike” by the US, which the Ministry claims “seriously violates World Trade Organization rules, does nothing to resolve its own issues, and disrupts normal economic and trade cooperation between China and the United States.”
The tariffs will go into effect on February 10 and were announced shortly after US President Donald Trump indicated that he would be speaking with Chinese President Xi Jinping within the next 24 hours.
On Saturday, Trump unveiled extensive trade measures targeting key partners such as Canada and Mexico. As part of these measures, Chinese goods will face an additional 10 percent tariff on top of the existing levies. Trump emphasized that these tariffs were intended to penalize countries that failed to stop the flow of undocumented migrants and drugs, including fentanyl, into the US.
However, on Monday, Trump decided to pause the tariff threat on Mexico and Canada, agreeing to a 30-day delay in exchange for concessions on border control and crime enforcement from the two neighboring countries.
Julien Chaisse, a professor of international economic law at City University of Hong Kong, characterized China’s retaliatory tariffs as a “calibrated response” rather than a full escalation. He suggested that these measures reflect Beijing’s willingness to impose economic pressure on Washington while still leaving room for negotiation.
The February 10 start date of the tariffs appears to be strategically chosen, offering time for potential talks between Presidents Trump and Xi. This delay creates an opportunity for last-minute diplomacy before the tariffs take effect. If discussions between the two leaders occur, there could be room for adjustments, partial exemptions, or reciprocal actions to prevent further trade tensions from escalating.
Chaisse further noted that the US’s interpretation of China’s actions will be crucial. If the US views these tariffs as a calculated move that still allows space for negotiation, this could pave the way for talks rather than further confrontation. However, if Trump sees them as a direct challenge, his administration could retaliate with additional trade restrictions, escalating the conflict even further.
In 2018, Trump initiated a contentious two-year trade war with China, largely driven by its significant trade surplus with the US. The trade war involved reciprocal tariffs on hundreds of billions of dollars’ worth of goods, disrupting global supply chains and damaging the global economy.
To end the trade war, China agreed in 2020 to purchase an additional $200 billion in US goods. However, this plan was derailed by the COVID-19 pandemic, and China’s annual trade deficit widened to $361 billion, according to recently released Chinese customs data.
Trump has also warned that he might increase tariffs on China unless the country takes action to curb the flow of fentanyl into the US. In response, China has claimed that fentanyl is a US problem and stated it would challenge the US tariffs at the World Trade Organization, while still leaving the door open for dialogue and further negotiations.