Just moments after President Trump’s tariffs on Chinese goods went into effect on Tuesday, February 3, the nation struck back, issuing its own tariffs on goods imported from the US. American tariffs on Canadian and Mexican goods were also supposed to go into effect on February 3. However, the leaders of both of America’s bordering countries agreed to address Trump’s concerns over border security and drug trafficking. Trump has a meeting with Chinese President Xi Jinping in the coming days.
The economic bitterness between the US and China is nothing new. During Trump’s first term in office, he instigated an escalating trade war with China. At each step, China countered Trump by matching his tariffs with their own. Xi Jinping is even more prepared to face Trump’s economic pressure.
China implemented 15% tariffs on US coal and natural gas and 10% on crude oil and heavy machinery. “The U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization,” a statement from China’s State Council Tariff Commission said on Tuesday. “It is unhelpful in solving its problems and damages normal economic and trade cooperation between China and the U.S.”
China also announced controls on some of the country’s main export products to the US, specifically minerals used for technology development and national security. In addition to limiting the export of precious minerals to the US, China announced it will begin an investigation into Google to determine if the corporation violates antitrust laws.
Economists fear an escalating trade war with China could have disastrous global effects, including lower GDP growth and continued inflation for the United States. As of 2025, the top imported products from China include phones, computers, electronic equipment, toys, appliances, clothing, car parts, cookware, and shoes. If US tariffs remain, consumers can expect prices on these products to soar.
