China Retaliates With Tariffs on US Imports

China announced it was levying tariffs on select imported U.S. goods Tuesday in response to President Donald Trump's imposed 10 percent tariffs on China, which went into effect Tuesday.

The Associated Press reported that China would implement a 15 percent tariff on coal and liquefied natural gas (LNG) products as well as a 10 percent tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday.

CNN reported that The Ministry of Commerce and China’s customs administration also announced new export controls effective immediately on more than two dozen metal products and related technologies. Those include tungsten, a critical mineral typically used in industrial and defense applications, as well as tellurium, which can be used to make solar cells.

According to CNN, the ministry also said it was adding two American firms — biotech company Illumina and fashion retailer PVH Group, owner of Calvin Klein and Tommy Hilfiger — to its unreliable entities list, saying they “violated normal market trading principles.” CNN reported the ministry said PVH Group discriminated against and interfered with the operations of Chinese companies.

Total Retail's Take: It's hard to say how much of an impact the Chinese tariffs will have on American goods. As the AP reported, the U.S. does not export much to China. In 2023, America exported 173,247 million cubic feet of LNG to China, or about 2.3 percent of its total natural gas exports, according to the U.S. Energy Information Administration.

Wendy Cutler, a former U.S. trade negotiator, told The New York Times that China had a range of options to retaliate, adding that the "menu approach" that China has taken wasn't surprising.

Trump also has not indicated any pause on the tariffs on China, something he did for Canada and Mexico after negotiating just hours before the tariffs on those countries were set to take effect.