02/06/2025 / By Laura Harris
China has unveiled a series of retaliatory measures against the United States after President Donald Trump imposed a 10 percent tariff on their goods.
On Feb. 1, Trump signed an executive order imposing an additional 10 percent tariff on all products imported from China into the United States. The new tariffs, which took effect on Feb. 4, are in addition to existing Section 301 duties and general import duties already in place. The order cites the “influx of synthetic opioids” from China as the justification for the new measures. (Related: Trump announces 25% tariffs on Mexico and Canada, effective February 1.)
According to the executive order, imports under $800, previously exempt from duties, are now subject to the new tariffs if the country of origin is China. There is no exclusion process announced for specific products, unlike in previous administrations. However, products in transit as of Feb. 1, are already exempted from the new tariffs if they arrive in the U.S. by March 7 at 10:01 a.m.
The Trump administration’s decision to impose the new tariffs is based on the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, Section 604 of the Trade Act of 1974, and 3 U.S.C. 301. The executive order also clarifies that duty drawback, which allows importers and exporters to recover already paid duties, will not apply to the new 10 percent tariffs.
In response, China has announced a series of retaliatory measures, imposing a 15 percent tariff on liquefied natural gas and coal and a 10 percent tariff on crude oil, farm equipment and certain “large engine” autos. These countermeasures will take effect on Feb. 10.
The Chinese government has also announced export controls on a range of items and technologies related to critical minerals, including tungsten, tellurium, ruthenium, molybdenum and ruthenium. These measures are set to take effect immediately and could have significant implications for the global supply chain.
“China firmly opposes the U.S. practice and urges the United States to correct its wrong practices immediately,” the Chinese Ministry of Commerce said.
Since Trump’s announcement, China has maintained that the tariffs imposed on its exports constitute a serious violation of World Trade Organization (WTO) rules.
Chinese officials have characterized the tariffs as “negative” and described them as “typical examples of unilateralism and trade protectionism.” On Feb. 4, the Chinese Ministry of Commerce formally submitted the U.S. tariffs to the WTO’s dispute settlement process.
“The U.S. practice seriously undermines the rules-based multilateral trading system, undermines the foundation of economic and trade cooperation between China and the United States and disrupts the stability of the global industrial chain and supply chain,” the Ministry of Commerce said. The Chinese Ministry of Finance echoed a similar stance, stating that the U.S.’s decision to impose additional levies of 10 percent on Chinese goods “seriously violates the rules of the World Trade Organization and destructs the normal bilateral economic and trade activities.”
The potential consequences of this trade war could be far-reaching. In fact, Louise Loo, China’s lead economist at Oxford Economics, warned that a second U.S.-China trade war is “clearly in its early stages” and she sees a “very high likelihood” of additional tariff rounds from both countries in the near future.
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