China retaliates after US tariff move with new duties, export controls and Google probe

China retaliates after US tariff move with new duties, export controls and Google probe

China has responded to new US tariffs with retaliatory duties on American goods, export controls on critical minerals and an antitrust investigation into Google, escalating the latest round of trade confrontation between the world’s two biggest economies.

The Guardian reported that the US tariffs, set at 10% across the board on Chinese products, came into force on Tuesday and immediately triggered Beijing’s countermeasures. China’s finance ministry announced 15% tariffs on coal and liquefied natural gas and 10% tariffs on crude oil, farm equipment, large-displacement vehicles and pickup trucks from the United States.

Beijing also moved beyond tariffs. Its commerce ministry and customs administration said it would impose export controls on a raft of critical minerals, including tungsten, tellurium, ruthenium and molybdenum-related items, citing national security interests. At the same time, China opened an anti-trust investigation into Google.

The reaction underlines how quickly tariff measures can spill into wider economic confrontation. It also shows Beijing using several different pressure points at once: direct duties on US exports, limits on key industrial materials and regulatory scrutiny of an American tech giant whose services are largely blocked inside China but which still has commercial interests there.

China’s commerce ministry accused the United States of violating World Trade Organization rules and damaging normal economic and trade cooperation. That language is predictable in a trade dispute, but it also signals that Beijing wants to frame the US move as a breach of the global trading system rather than a bilateral argument alone.

The US, for its part, has also removed the de minimis exemption for Chinese shipments under $800, a change that will affect retailers and cross-border sellers that had relied on the rule. The broader market reaction was mixed, with Asian equities higher in some places and the FTSE 100 lower in London.

The dispute is not happening in isolation. Washington had also delayed threatened tariffs on Mexico and Canada after last-minute talks, suggesting tariff policy is being used as both punishment and leverage across multiple fronts. For China, however, the action appears to have been immediate and coordinated.

The practical effect is to widen an already volatile trade war. Consumers could face higher prices, companies may have to reroute supply chains, and governments are likely to keep treating tariffs as bargaining chips. For now, both sides are signalling that they are prepared to escalate rather than step back.

Citations

• [3313] The Guardian reported that China retaliated against new US tariffs with duties on US energy and industrial goods, export controls on critical minerals and an antitrust probe into Google.