China strikes back: New tariffs on US energy imports
On Tuesday, the Chinese Ministry of Finance announced that it will impose a 15% tariff on imports of coal and liquefied natural gas from the United States. In response to the 10% tariffs imposed by Washington, these retaliatory measures will also include higher tariffs on imports of crude oil and agricultural machinery.
The Ministry of Finance in Beijing announced that a 15% tariff would be imposed on coal and liquefied natural gas (LNG), effective 10 February.
Additionally, 10% tariffs on crude oil imports, agricultural machinery, large engine capacity vehicles, and so-called pickups were announced.
The Chinese government's decision came after Washington announced on 1 February that 10% fees would be imposed on Chinese imports. The Chinese Ministry of Commerce says this "seriously violates the World Trade Organization (WTO) rules."
Trump changes decision on tariffs for Mexico and Canada
It should be noted that Donald Trump signed an order on Saturday imposing a 25% tariff on goods from Canada and Mexico, except petroleum products, which are subject to a lower 10% tariff. The President also decided to implement 10% tariffs on goods from China.
The new rates were initially supposed to take effect on Tuesday, February 4. However, the president decided to postpone the introduction of tariffs on Mexico and Canada by a month.
Both Canada and Mexico have committed to increasing border protection and cooperating with the USA against fentanyl smuggling.
"Tariffs will be very high"
Trump also announced that he would speak with his Chinese counterpart, Xi Jinping, within 24 hours about a potential trade agreement. If a deal with Beijing is not reached, he threatened to increase the 10% tariffs imposed on Chinese products.
The first decisions are called to be just "an opening salvo". "If we can't make a deal with China, then the tariffs would be very, very substantial," he stated.
