- China announces 15% tariffs on US coal and LNG, 10% on oil and agricultural equipment, plus Google antitrust investigation in response to Trump's blanket levy.
- Offshore yuan extends losses and drops 0.3% to 7.3340 as trade tensions escalate during the Lunar New Year holiday.
China wasted no time in launching a swift counteroffensive against President Trump's latest trade measures, announcing multiple retaliatory actions that signal a renewed trade war between the world's two largest economies.
The response comes after Trump imposed a 10% blanket tariff on Chinese exports, citing concerns over illegal drug flows.
Beijing's multifaceted response includes new tariffs on American imports: 15% on coal and liquefied natural gas, and 10% on oil and agricultural equipment.
Additionally, China's State Administration for Market Regulation announced an anti-trust investigation into Google, adding another layer of complexity to the already growing tensions.
The Chinese government has also implemented strategic trade restrictions, including export controls on tungsten-related materials and the addition of major American companies PVH Corp. (owner of Calvin Klein) and Illumina Inc. to its unreliable entity list.
The impact of these measures was immediately felt in financial markets. The offshore yuan extended its losses, dropping 0.3% to 7.3340 during the Lunar New Year holiday when onshore trading was closed.
The trade tension rippled to China's proxies, with both the Australian and New Zealand dollars falling by at least 0.8%.
Trump's weekend order, which takes effect after midnight on Tuesday in the US, includes retaliation clauses that would trigger increased tariffs if countries respond with countermeasures.
This provision sets the stage for potential further escalation in what appears to be a renewed cycle of retaliatory trade actions between the two economic powerhouses.
Edited By Annette George
