Beijing, February 4, 2025 – China has announced a new round of retaliatory tariffs on US imports, escalating tensions in the ongoing trade dispute with the Trump administration. The Ministry of Commerce on Tuesday declared a 15% tariff on American coal and liquefied natural gas (LNG), along with a 10% tariff on crude oil, agricultural machinery, and large-displacement vehicles.
The move comes as a direct response to President Donald Trump’s latest round of tariffs on Chinese goods, which impose a 10% duty on multiple Chinese exports to the US. These tariffs are set to take effect on Tuesday.
Escalating Trade War
China’s decision to impose tariffs on energy imports signals a strategic move to hit key US industries, particularly the fossil fuel sector, which has increasingly relied on Chinese demand.
A spokesperson from China’s Ministry of Commerce stated that the country was left with no choice but to take countermeasures after repeated tariff escalations from Washington. “We urge the United States to return to the path of dialogue and negotiation,” the spokesperson said.
Trump’s Response and Future Talks
Despite the rising trade tensions, reports indicate that Trump and Chinese President Xi Jinping are expected to hold talks in the coming days in an attempt to de-escalate the situation. However, analysts warn that continued economic brinkmanship could push both economies into prolonged uncertainty.
The latest tariffs mark a new phase in the US-China trade war, which has seen both countries impose billions of dollars in duties on each other’s goods since 2018. With elections looming in the US and China looking to stabilize its economy amid a global slowdown, the coming months will be crucial in determining whether tensions ease or further intensify.
What’s at Stake?
- For the US: Higher tariffs on coal and LNG could hurt American energy exporters looking to expand their market in China.
- For China: The additional costs could strain domestic industries dependent on US crude oil and machinery.
- For Global Markets: Rising tariffs could increase energy costs and disrupt supply chains, affecting industries worldwide.
As both nations remain locked in a high-stakes economic standoff, the world watches closely to see whether diplomacy or further confrontation will define the next chapter of US-China trade relations.
