US coal and gas among targets of China's retaliatory tariffs

In response to U.S. President Trump's move to impose a 10% tariff on all Chinese imports, China announced it would take retaliatory measures by imposing tariffs on some U.S. imports. This action further escalates the trade tensions between China and the United States.

China's retaliatory measures include a 15% tariff on U.S. imported coal and liquefied natural gas, while crude oil, agricultural machinery, pickup trucks, and large-displacement vehicles will face a 10% tariff. These measures are expected to take effect next Monday. China has also filed a complaint with the World Trade Organization (WTO), accusing the United States of violating international trade rules.

The Trump administration claims that the tariff increase is to address the trade deficit and curb the influx of fentanyl. The U.S. government believes that the chemicals used to manufacture fentanyl come from China. In response, China has previously stated that the U.S.'s fentanyl crisis is its own problem.

In response to the new U.S. tariffs, China is also adding more U.S. companies to its "unreliable entity list." The companies added to the list this time include PHV Corp, which owns fashion brands such as Calvin Klein and Tommy Hilfiger, and U.S. biotechnology company Illumina. The Chinese Ministry of Commerce accused these companies of taking "discriminatory measures" against Chinese enterprises in a statement. Companies on the list may face penalties, including fines and the revocation of work visas for foreign employees.

In addition, China has also announced plans to restrict exports of 25 critical minerals, some of which are important components of electronic products. These minerals include tungsten, which is difficult to obtain and critical to the aerospace industry, tellurium, which is widely used in solar panels, and molybdenum, which is used to strengthen steel alloys. Chinese regulators have also launched an antitrust investigation into Google, even though Google's search service has been blocked in China since 2010, it still conducts some business activities in China through cooperation with local developers and other means.

For a long time, as part of the ongoing trade war, the U.S. and China have imposed tariffs on hundreds of billions of dollars worth of each other's goods. Meanwhile, Trump has suspended the threatened 25% tariffs on Mexico and Canada for 30 days. After last-minute negotiations, the two U.S. neighbors agreed to strengthen border security and take greater measures to address fentanyl trafficking. However, uncertainty remains, and businesses may reduce their reliance on the U.S. market, postponing investments in building new factories or hiring workers until the trade stalemate becomes clearer.