CHINA has retaliated with brutal revenge sanctions after the US imposed the 10 per cent tariffs on its goods.
Following President Donald Trump’s decision to postpone tariff plans for 30 days, Canada and Mexico have expressed relief. The move came as a last-minute deal that eased tensions in the region.
Shortly after the initiation of US taxes, China retaliated by imposing 10 per cent tariffs on specific American products such as crude oil, agricultural machinery, as well as large cars and pickup trucks. This tit-for-tat escalation highlighted the ongoing trade tensions between the two economic giants.
There will also be 15 per cent tariffs on coal and liquefied natural gas – as well as an investigation into Google.
In addition, China announced export controls on rare earth metals critical for clean energy transition. The affected elements include tungsten, tellurium, ruthenium, molybdenum, and related items essential for various industries.
But there could be room for talks, much like Trump had with Canada and Mexico, as the tariffs imposed by China won’t come into effect until Monday 10 February.
The newly-inaugurated president believes the taxes were “worth the price” to stopping the manufacture and import of the deadly drug fentanyl and ending the “RIPOFF OF AMERICA”.
Trump added that the tariffs on China could just be the beginning – but the White House said a conversation with President Xi Jinping is due.
The Republican said: “China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher.”
China has slammed Trump for the claim and described fentanyl as America’s problem, adding that it would challenge the tariffs at the World Trade Organisation among other measures.
China serves as a major supplier of auto parts to the US.
Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data.
And the US imported over a shocking $32 billion in “toys, games and sporting goods” from China last year too.
Americans also import billions of dollars worth of clothing in a year from China.
It comes after Trump shelved his punishing tariff plans for 30 days for Canada and Mexico.
The Republican was left celebrating after he managed to secure a stronger border with his two neighbors through a $1.3billion plan and 10,000 troops.
Trump dramatically stopped entering a potential trade war with Canada and Mexico by pausing sweeping 25 per cent tax increases just hours before it was scheduled to be implemented.
Stock markets had gone into a tailspin on Monday as Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau held last-minute calls with Trump.
The duo were left making a desperate bid to end any threat and halt a damaging world trade war.
Trump confirmed he’d decided to pause his plans for a month after both Mexico and Canada promised to keep 10,000 frontline personnel along their American borders.
Why Trump originally hiked the China tariffs
PRESIDENT Donald Trump imposed 10 per cent import tariffs from China that took effect early on Tuesday.
Trump believes that China is “sending fentanyl to Mexico and Canada” and, through the tariffs, wants to stop the manufacture and import of the deadly drug as well as end the “RIPOFF OF AMERICA”.
China has slammed Trump for the claim and described fentanyl as America’s problem.
The country also said the tariffs are a “serious violation” of the World Trade Organization rules.
China is therefore filing a lawsuit with the WTO against the US for “wrongful practice”.
China serves as a major supplier of auto parts to the US.
Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data.
And the US imported over a shocking $32 billion in “toys, games and sporting goods” from China last year too.
The aim is to protect the US from illegal immigration and an influx of deadly drugs entering the country.
Trump praised his own negotiating skills by posting on Truth Social after his last call with Trudeau: “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that.
“I am very pleased with this initial outcome.”
He also said Canada will implement their $1.3billion border plan and reinforce it with new helicopters, technology and personnel.
Trump added that the next 30 days will determine if he goes ahead with the tariffs or if a “final economic deal with Canada can be structured”.
Justin Trudeau later confirmed these changes in alignment with Trump’s wishes.
Mexican President Claudia Sheinbaum also announced her administration and Trump had reached a series of similar agreements.
Sheinbaum said at a news conference she had a “long conversation” with Trump on the phone on Monday.
Among the series of agreements includes Mexico’s immediate action to reinforce the northern border with 10,000 members of the country’s National Guard.
The bolstered security presence will be tasked with preventing drug trafficking from Mexico to the United States, particularly fentanyl.
The United States said it would also commit to working to prevent the trafficking of high-powered weapons into Mexico, the Mexican president said.
“Our teams will begin working today on two fronts: security and trade,” Sheinbaum added.
Trump also gave Sheinbaum 30 days to “achieve a deal” between the two countries.
He replied on Truth Social: “I just spoke with President Claudia Sheinbaum of Mexico.
“It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States.
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrant into our country.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries.”
Earlier on in the day, Mexican, Canadian and Chinese leaders all scrambled to retaliate at the President after he signed an executive order over the weekend that would allow tariffs to start on Tuesday.
Canada responded by imposing a 25 per cent tariff on more than $100 billion of US goods.
TRADE WAR BREWING
Meanwhile, President Trump had two conversations with Canadian Prime Minister Justin Trudeau, hours before the US tariffs on Canada are set to go into effect.
The two leaders spoke on the phone early Monday – talks a senior Canadian government official told The New York Times “were not optimistic.”
What is the trade war?
DONALD Trump almost started a trade war after he threatened to slap steep tariffs on imports from Canada and Mexico.
The newly-inaugurated president believes the taxes were “worth the price” to stopping the manufacture and import of the deadly drug fentanyl and ending the “RIPOFF OF AMERICA”.
But prices of fruit like avocados and tomatoes and manufactured products like cars or computers are set to be more expensive for Americans.
A trade showdown could cost families $1,000 (USD) and slow down general growth if prices spike – but the Republican appears ready to risk it with the taxes kicking in Tuesday.
Trump slammed those opposing the tariffs saying the US was no longer going to be the “stupid country” that was subsidizing others.
He said his tariffs could bring some pain to the economy, but that is the “PRICE THAT MUST BE PAID” to end trade deficits with Canada, Mexico and China.
In a post on TruthSocial on Sunday, he said: “MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!!
Trump said he would slap a 25 per cent tariff on all imports from Canada and Mexico and add another 10 per cent tariff on to Chinese trade.
Energy, like oil and natural gas, imported from Canada was also only hit with a 10 per cent tariff.
But soon Mexico and Canada announced condemnatory retaliatory tariffs on the US.
Mexican President Claudia Sheinbaum ordered the mysterious “Plan B” to go into effect which “includes tariff and non-tariff measures” in a lengthy X post.
She said that her government sought dialogue over confrontation with the US – but now Mexico has had to respond with similar force.
However, Trump told CNN their follow-up conversation went “very well.”
But when asked if the tariffs against Canada will still go into effect on Tuesday, the president said, “Watch.”
The tariffs against Canada include a 25% tax on Canadian imports, though energy products, such as oil and natural gas, will only be subject to a 10% levy.
President Trump acknowledged that the tariffs would “bring some pain to the economy” but said it is the “price that must be paid.”
Trump said he also plans to speak with China perhaps over the next 24 hours.
The president warned that if the two countries can not strike a deal, China’s tariffs will “be substantial.”
EUROPEAN UNION ‘OUT OF LINE’
As a looming trade war brews, Trump also slammed the European Union and warned tariffs on goods from its 27 member states will
“definitely happen.”
“It might happen with that, but it will definitely happen with the European Union,” Trump told BBC.
“I can tell you that, because they’ve really taken advantage of us, you know, we have an over $300 billion deficit.”
“They don’t take our cars, they don’t take our farm products.
“They take almost nothing, and we take everything: from the millions of cars, tremendous amounts of food and farm products.”
The president said the European Union and United Kingdom are both “out of line,” but was more sentiment that a deal could be worked out with the UK.
“So, the UK is way out of line, and we’ll see the UK, but European Union is really out of line,” Trump added.
“UK is out of line. But I’m sure that one can be worked out, Prime Minister Starmer has been very nice.”
Trump is considering imposing a 10% tariff on goods coming from the European Union, according to The Telegraph.
“Trump is testing the water with Canada and Mexico and what he can get away with,” a source told the outlet.
“They’re talking about doing it on all imports from the EU.”
