Trump Trade War: China Announces retaliatory tariff on US Crude Oil, LNG others

The Chinese government has announced a retaliatory tariff of 15 percent on coal and liquefied natural gas (LNG) imports from the United States for the Donald Trump administration’s economic sanctions.

On February 2nd, the US President implemented economic measures that levied substantial new import taxes on goods from Canada, Mexico, and China.

The Trump administration claims that the tariffs are intended to reduce the number of drugs and undocumented immigrants entering the country.

China’s commerce ministry had said it would file a complaint with the World Trade Organization (WTO) and “take corresponding countermeasures”.

The ministry said tariffs are “not constructive” and will only “undermine” work done by both nations to combat narcotics.

In a statement on Tuesday, the ministry announced the imposition of a 10 percent tariff on US crude oil and heavy machinery.

The ministry said the tariffs would take effect on February 10.

The Chinese government also announced a list of new export controls including tungsten-related materials, typically used in industrial and defense applications, as well as materials linked to tellurium, which can be used to make solar cells.

“On February 1, 2025, the US government announced that it would impose a 10% tariff on all Chinese goods exported to the US on the grounds of fentanyl and other issues,” the statement reads.

“The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization.

“It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US

“In accordance with the Tariff Law of the People’s Republic of China, the Customs Law of the People’s Republic of China, the Foreign Trade Law of the People’s Republic of China, and other laws and regulations and the basic principles of international law, and with the approval of the State Council, additional tariffs will be imposed on some imported goods originating from the United States starting from February 10, 2025.

“The relevant matters are as follows: A 15% tariff will be imposed on coal and liquefied natural gas.

“2. A 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.

“3. For the imported goods listed in the appendix originating from the United States, corresponding tariffs will be levied on the basis of the current applicable tariff rates.”

The ministry added that “the current bonded and tax reduction and exemption policies remain unchanged, and the additional tariffs will not be reduced or exempted