China Retaliates Against Trump’s Tariffs – Google Caught in the Crossfire

China fired back Tuesday at President Donald Trump’s tariff on Chinese products.

Hours after Trump’s 10 percent tariff on Chinese goods took effect, which Trump framed as a tactic to force China into curbing fentanyl exports, China imposed tariffs on a range of products, including liquefied natural gas, coal, farm machinery and other imports from the United States, according to The New York Times.

China slapped an additional 10 percent tariff on crude oil, agricultural equipment, larger cars and pickup trucks, as well as an additional 15 percent tariff on coal and natural gas.

China also announced new restrictions on exports of tungsten, tellurium, molybdenum, and other metals used in cutting-edge technology products, citing “national security and interests.”

China also put PVH — the American retailer that owns the Calvin Klein and Tommy Hilfiger brands — on its “unreliable entities” list

China also announced Tuesday that it is launching an anti-monopoly investigation into Google. Although Google is blocked in China, it does business with Chinese companies that sell products abroad.

No details were given about the alleged anti-trust violations.

Trump, who imposed but later paused tariffs on Mexico and Canada, billed his tariffs as an “opening salvo,” and some commentators said China appeared to be acting in a similar vein.

“As far as I can see so far, it’s a relatively limited response, affecting no more than 30 percent of U.S. exports to China,” said Bert Hofman, a former World Bank official and an adjunct professor at the East Asian Institute at the National University of Singapore.

“They’re probably trying to keep their powder dry, because this could still be only the first step from the Trump administration,” he said.

“This is likely only the beginning of a long process for the two countries to negotiate,” said Zhiwei Zhang, the president and chief economist of Pinpoint Asset Management, an investment firm in Hong Kong.

“There is hope to de-escalate in this process, though the road ahead may be bumpy,” Zhang said.

🚨 | BREAKING: CHINA just parried with a 10% tariff on U.S. oil and 15% on coal & LNG in a desperate counter to President Trump’s trade offensive.

Here’s the problem for China: they NEED U.S. energy. We don’t need their junk.

Trump is playing 4D chess, and Xi is running out of… pic.twitter.com/NHtgBjiHUc

— Hank ™ (@HANKonX) February 4, 2025

“For the most part, these moves are warnings that China intends to harm U.S. interests if need be but still give China the option to back down,” said Julian Evans-Pritchard, head of China economics at Capital Economics, according to Barrons.

“The tariffs could be postponed or canceled before they come into effect” on Monday.

Reuters noted that Trump and Chinese President Xi Jinping will talk this week.

“It’ll happen in the next couple of days,” White House press secretary Karoline Leavitt said.

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