Beijing announced a broad package of economic measures targeting the United States on Tuesday, hitting back after US President Donald Trump imposed 10% tariffs on Chinese imports. The fresh duties, announced by China's Ministry of Finance, levy a 15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks. The measures take effect on February 10. The Ministry of Commerce and China's customs administration also announced new export controls effective immediately on more than two dozen metal products and related technologies. Those include tungsten, a critical mineral typically used in industrial and defense applications, as well as tellurium, which can be used to make solar cells. China is the leading producer of tungsten concentrates, representing more than 80% of world production, according to US government estimates. The ministry also said it was adding two American firms — biotech company Illumina and fashion retailer PVH Group, owner of Calvin Klein and Tommy Hilfiger — to its unreliable entities list, saying they "violated normal market trading principles." In a separate statement, China's State Administration for Market Regulation said it was initiating an investigation into Google for suspected violation of its anti-monopoly. The company, whose search engine is not available in China, has minimal operations in the country. The raft of announcements come as a broad-based 10% tariff on Chinese imports to the United States announced by the White House on Saturday came into effect. Beijing had slammed those tariffs in a statement Sunday and vowed to "resolutely defend its rights" by filing a complaint with the World Trade Organization (WTO) and taking "corresponding countermeasures." In a statement Tuesday, China's commerce ministry confirmed that it had brought the Trump administration's tariff measures to the WTO dispute settlement mechanism. "The US practice seriously undermines the rules-based multilateral trading system, undermines the foundation of economic and trade cooperation between China and the United States, and disrupts the stability of the global industrial chain and supply chain," the ministry said. The Chinese measures, announced on the final day of China's week-long new year holiday, mark what could be the opening salvo of a new tit-for-tat trade war between Washington and Beijing. However, they don't rule out the possibility of further dialogue or deal-making between the two sides. The White House had announced the 10% tariffs on Chinese imports on Saturday as part of broader trade measures also targeting Mexico and Canada – part of what the Trump administration said was a bid to hold those countries accountable for illegal immigration and the flow of fentanyl and other drugs into the US. Trump agreed to "immediately pause" tariffs on Mexico and Canada after holding separate calls with those countries' leaders Monday — the day before the duties on goods from all three countries were meant to come into effect. Both leaders had agreed to strengthen security along their borders. Trump said Monday that he expected he could speak with Chinese leader Xi Jinping in the next 24 hours. Beijing has yet to confirm any call. This potential exchange comes as Beijing and Washington aim to set the tone for their relationship and navigate a raft of thorny issues — including a gaping trade deficit, a tech and military rivalry and the fentanyl trade. US law enforcement believes a number of China-based entities supply precursor chemicals, which can be used to make finished fentanyl in labs operated by drug cartels in the US and Mexico. Canada makes up just 0.2% of US border fentanyl seizures. Beijing has defended its efforts to control exports of the precursor chemicals used to produce fentanyl and said the latest tariffs would "erode the foundation of trust and cooperation in the field of drug control between China and the United States." The 10% duties, however, are a far cry from the upwards of 60% tariffs that Trump had threatened to levy on China during his campaign, signaling that there could be more to come if the two sides are not able to reach a deal on a broader host of issues. Trump campaigned on winning an economic competition against China, and, on his first day in office, ordered a review of the US-China economic relationship, which is due April 1. The results could form the basis for additional duties on Chinese goods. Those could address the gaping trade imbalance between the two countries, while Trump has specifically linked the 10% tariffs to the fentanyl trade. The US president has also said he hopes that countries can reach a trade deal and work together on issues, including ending the war in Ukraine. He also paused the enforcement of a law requiring the ban of social media app TikTok if its Chinese parent company did not divest its US business. These issues are expected to factor into expected talks between the two countries in the weeks and months to come. Beijing has also signaled its intention to avoid a spiraling trade war like the one seen during Trump's first term in office. At that time, the White House slapped tariffs on hundreds of billions of US imports from China, while Beijing retaliated. China has diversified its economy and trade partners since that time, but its export-reliant economy is grappling with slowing growth and other challenges. — CNN
