China Hits Back at US Tariffs, Files WTO Complaint

In a swift response to fresh US trade measures, China announced Tuesday that it would impose tariffs on American energy, vehicles, and equipment, further deepening tensions between the world’s two largest economies.

The decision follows US President Donald Trump’s sweeping new tariffs on key trade partners, including Canada and Mexico, with an additional 10 percent levy on Chinese imports.

Beijing, in retaliation, has implemented a 15 percent duty on US coal and liquefied natural gas (LNG), while crude oil, agricultural machinery, large-engine vehicles, and pickup trucks will face a 10 percent tariff.

Beijing denounced Washington’s move as a “unilateral tariff hike” that violates World Trade Organization (WTO) regulations and undermines normal trade relations.

In response, China has filed an official complaint with the WTO, accusing the US of “malicious” trade practices.

“[The US decision] seriously violates World Trade Organization rules, does nothing to resolve its own problems, and disrupts normal economic and trade cooperation between China and the United States,” Beijing said in a statement.

Alongside the tariffs, China has launched a probe into American tech giant Google and added US fashion conglomerate PVH Corp.—the parent company of Tommy Hilfiger and Calvin Klein—and biotech leader Illumina to its “unreliable entities” list.

Furthermore, Beijing has tightened its grip on key industrial exports by imposing fresh controls on rare metals and chemicals like tungsten, tellurium, bismuth, and molybdenum—critical materials in industrial production.

China is a crucial market for US energy exports, with oil, coal, and LNG shipments totaling over $7 billion last year.

However, this pales in comparison to China’s $94 billion energy trade with Russia, underscoring Beijing’s ability to shift supply chains away from the US.

Despite the tit-for-tat measures, analysts suggest China’s response has been measured. “The retaliation is not aggressive, as China only targets some US products, in response to the US tariff on all China’s exports to the US,” said Zhang Zhiwei of Pinpoint Asset Management. “This is likely only the beginning of a long process for the two countries to negotiate.”

While the US-China trade conflict intensifies, Trump has reached temporary agreements with Canada and Mexico to tighten border controls on illegal migration and fentanyl smuggling.

Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau both secured last-minute deals with Washington to avert tariffs.

As part of the agreement, Mexico will deploy 10,000 troops to its US border, while Canada has promised stricter security and harsher crackdowns on drug cartels.

Despite these moves, tensions remain high. Asian markets initially surged on news of the paused tariffs but later dipped as China’s countermeasures were unveiled.

The White House has downplayed fears of a full-scale trade war, instead framing its actions as part of a broader effort to combat illegal drugs.

“This is not a trade war, this is a drug war,” said National Economic Council Director Kevin Hassett, emphasizing the administration’s focus on stopping fentanyl trafficking.

However, the claim has been met with skepticism, especially from Canada, where Trump’s remarks about potentially making the country the “51st US state” have triggered public outrage.

Anti-US sentiment has risen in Canada, with boycotts of American goods and protests at sporting events.

With China’s WTO complaint, ongoing investigations into US firms, and continued economic tit-for-tat measures, the global trade landscape remains volatile.

While Trump has hinted at a potential call with Chinese President Xi Jinping to ease tensions, experts warn that this is just the latest chapter in an increasingly unpredictable US-China trade standoff.

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