As trade tensions escalate, China strikes back at the US with tariff retaliation targets, including coal, gas, and Google.
A day can be a long time in politics, and this time yesterday Canada and Mexico were readying themselves for a North American trade war. However, as of this morning, only China is being hit by increased import charges.
The Timeline of Events Leading Up to the Trade War
On February 1st, a White House statement announced that ‘Donald Trump would be implementing a 25% additional tariff on imports from Canada and Mexico and a 10% tariff on China.’ The tariffs were intended to hold the countries accountable for halting illegal immigration and stopping drugs flowing into the US.
However, Mexico and Canada vowed to hit back with tariffs of their own, while ‘China said it would take ‘necessary countermeasures’.’ On February 3rd, Mexican President Claudia Sheinbaum announced that she and ‘Donald Trump had reached an agreement to halt the tariffs for 30 days – with Mexico agreeing to send 10,000 National Guard members to the border.’_
Later that day, Canadian Prime Minister Justin Trudeau said he had a last-minute call with ‘Donald Trump.’ Canada agreed to reinforce its border in exchange for a 30-day postponement on tariffs. But without an agreement reached with Beijing by 00:01 EST (05:00 GMT) this morning, a US tariff of 10% on Chinese imports came into effect.
China’s Retaliatory Measures
Shortly after the US tariffs took effect, ‘Beijing announced it would be imposing retaliatory tariffs on a raft of American products, including:‘
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A 15% tariff on coal and liquefied natural gas
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A 10% tax on crude oil, agricultural machinery, pickup trucks, and large-engine cars
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An anti-monopoly investigation into Google
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Placed export controls on 25 types of rare metal products
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Added ‘PVH Corp,’ the holding company for Calvin Klein and other brands, and US biotechnology company Illumina to its ‘unreliable entities’ list
Google was founded in 1998 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University.
Initially, it was a search engine called Backrub, but later renamed to 'Google'.
The name 'Google' comes from the mathematical term 'googol,' which represents the number 1 followed by 100 zeros.
In 2000, Google introduced 'AdWords,' a pay-per-click advertising platform that revolutionized online marketing.
Today, Google is a multinational conglomerate with a market value of over $1 trillion, offering a wide range of products and services, including Google Search, Gmail, YouTube, and more.
The History of Trade Tensions Between the U.S. and China
We’ve seen China and the US go head-to-head on trade before, with ‘Donald Trump’s ‘America First’ agenda prompting a full-blown tariff war during his first term in 2018.’ Hundreds of billions of dollars’ worth of Chinese products faced new or higher tariffs, resulting in tit-for-tat retaliation from Beijing.
Under President Joe Biden, the US kept most of those tariffs and even increased some of them, targeting key high-tech sectors like semiconductors and electric vehicles. Despite the tensions, the world’s two largest economies remain deeply intertwined, with each other being among their top trading partners.
China’s Countermeasures: A Breakdown
If you’re just catching up on the news that China has slapped counter tariffs on US goods, here’s a quick look at the measures Beijing has imposed:
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A 15% tariff on coal and liquefied natural gas
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A 10% tax on crude oil, agricultural machinery, pickup trucks, and large-engine cars
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Announced an anti-monopoly investigation into ‘Google’
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Placed export controls on 25 types of rare metal products
Google’s Presence in China
Although Google‘s search services have been blocked in China since 2010, it still has some business activities in China. For example, it still provides apps and games to the Chinese market through partnership with local developers.
The World Trade Organization Weighs In
China accused the ‘Trump administration of breaking international trade rules, saying that the US’s unilateral imposition of tariffs ‘seriously violates’ WTO rules.’
The World Trade Organization (WTO) is an international organization that regulates and facilitates global trade.
Established in 1995, the WTO replaced the General Agreement on Tariffs and Trade (GATT).
Its main objective is to promote free trade by providing a forum for countries to negotiate trade agreements and settle disputes.
The WTO has 164 member countries and plays a crucial role in shaping international trade policies.
It sets rules for trade in goods, services, and intellectual property.
