China Imposes Tariffs on $13.9bn Worth of US Imports
China’s two new tariffs lists affect goods from the US that totaled $13.9 billion in 2024. Among those items, $9.5 billion goods including tractors and functional vehicles will be subject to 10% additional levies, while $4.4 billion of goods — coal and liquefied natural gas — will face an extra 15% tax.
China retaliated to Donald Trump’s opening trade war tariffs by targeting a handful of American companies and slapping levies on some US goods
In more targeted measures, authorities put Calvin Klein owner PVH Corp. and US gene sequencing company Illumina Inc. on a so-called blacklist of entities that could affect their sizable operations in China, and imposed new export control on tungsten and other critical metals used in electronic, aviation and defense industries.
The offshore yuan is little changed after paring earlier losses, while the broad dollar largely erased previous gains. Currencies with strong trade links to China such as the Australia and New Zealand dollar have also pared back on losses.
Xi’s government swung back almost immediately after US levies came into force, dashing hopes that Beijing would reach a deal to avoid the tariffs. The Republican hours earlier granted Canada and Mexico a last-minute reprieve from a 25% tariff following leader talks.
The export restrictions, however, may prove to be more consequential.
China is the largest producing country of tungsten, accounting for about 80% of the global production. Tungsten, known for its remarkable density and high melting point, acts as a buffer against intense temperatures and is most commonly used in armor-piercing missiles in the defense industry.
PVH is also the parent of Tommy Hilfiger and has been under Chinese regulatory scrutiny since September for allegedly boycotting cotton from the Xinjiang region, although the statement didn’t mention the issue. Illumina is the leading global provider of genetic sequencing, and a rival to Chinese biotech giant BGI Genomics Co.
Trump over the weekend ordered a blanket levy on Chinese exports to take effect after midnight on Tuesday in the US, for what he calls Beijing’s failure to prevent the flow of illegal drugs. The orders included retaliation clauses that would increase tariffs if the countries responds in kind.
China’s two new tariffs lists affect goods from the US that totaled $13.9 billion in 2024. Among those items, $9.5 billion goods including tractors and functional vehicles will be subject to 10% additional levies, while $4.4 billion of goods — coal and liquefied natural gas — will face an extra 15% tax.
China retaliated to Donald Trump’s opening trade war tariffs by targeting a handful of American companies and slapping levies on some US goods
In more targeted measures, authorities put Calvin Klein owner PVH Corp. and US gene sequencing company Illumina Inc. on a so-called blacklist of entities that could affect their sizable operations in China, and imposed new export control on tungsten and other critical metals used in electronic, aviation and defense industries.
The offshore yuan is little changed after paring earlier losses, while the broad dollar largely erased previous gains. Currencies with strong trade links to China such as the Australia and New Zealand dollar have also pared back on losses.
Xi’s government swung back almost immediately after US levies came into force, dashing hopes that Beijing would reach a deal to avoid the tariffs. The Republican hours earlier granted Canada and Mexico a last-minute reprieve from a 25% tariff following leader talks.
The export restrictions, however, may prove to be more consequential.
China is the largest producing country of tungsten, accounting for about 80% of the global production. Tungsten, known for its remarkable density and high melting point, acts as a buffer against intense temperatures and is most commonly used in armor-piercing missiles in the defense industry.
PVH is also the parent of Tommy Hilfiger and has been under Chinese regulatory scrutiny since September for allegedly boycotting cotton from the Xinjiang region, although the statement didn’t mention the issue. Illumina is the leading global provider of genetic sequencing, and a rival to Chinese biotech giant BGI Genomics Co.
Trump over the weekend ordered a blanket levy on Chinese exports to take effect after midnight on Tuesday in the US, for what he calls Beijing’s failure to prevent the flow of illegal drugs. The orders included retaliation clauses that would increase tariffs if the countries responds in kind.
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