China’s tit-for-tat tariffs on US take effect

(BBC) China’s tit-for-tat import taxes on some American goods came into effect on Monday, as the trade war between the world’s two biggest economies escalates and US President Donald Trump threatens to hit more countries with tariffs.

Beijing announced the plan on 4 February, minutes after new US levies of 10% on all Chinese products came into effect.

On Sunday, Trump said he would impose a 25% tariff on all steel and aluminium imports into the US, with a full announcement to come on Monday.

Speaking to reporters on Air Force One en route to the Super Bowl, he also said he was planning reciprocal tariffs on other nations – but did not specify which ones would be targeted.

China’s latest tariffs on US goods include a 15% border tax on imports of US coal and liquefied natural gas products. There is also a 10% tariff on American crude oil, agricultural machinery and large-engine cars.

Last week, Chinese authorities launched an anti-monopoly probe into technology giant Google, while PVH, the US owner of designer brands Calvin Klein and Tommy Hilfiger, was added to Beijing’s so-called “unreliable entity” list.

China has also imposed export controls on 25 rare metals, some of which are key components for many electrical products and military equipment.

Trump’s announcement over the weekend of plans to impose a 25% tax on the US’s steel and aluminium imports comes days after he reached deals with Canada and Mexico to avoid 25% tariffs that he had threatened on all goods from the countries.