By Chinasaokwu Helen Okoro
Summary
°China has announced retaliatory tariffs on some American goods, as US tariffs on all Chinese goods come into force
°The Chinese tariffs – due to begin on Monday – would put a 15% import tax on US coal and liquefied natural gas, plus 10% on crude oil, agricultural machinery, pick-up trucks, and some sports cars
°The 10% tariff on all Chinese imports to the US began at 00:01 ET on Tuesday (05:01 GMT)
°China also announces an anti-monopoly investigation into Google – the company operates there, but its search engine has been blocked since 2010
°Proposed US tariffs of 25% on Canadian and Mexican goods have been postponed after last-minute talks
°President Trump says the Chinese tariffs are a response to trade deficits, and the flow of fentanyl into the US.
Trade relations between the world’s two largest economies first descended into a full-blown tariff war during Trump’s first term in 2018.
At the time, Trump was implementing his “America First” agenda, imposing round after round of tariffs on foreign goods. Hundreds of billions of dollars’ worth of Chinese products faced new or higher tariffs, resulting in tit-for-tat retaliation from Beijing.
Under President Joe Biden the US kept most of those tariffs and even increased some of them. Adopting a more targeted approach, Biden took aim at key high-tech sectors. He hiked tariffs and restricted trade in products like semiconductors and electric vehicles.
Despite the tensions, the world’s two largest economies remain deeply intertwined – and many commentators say theirs is the world’s most consequential bilateral relationship.
The two countries are among each other’s top trading partners – US imports from China reached $401bn (£323bn) in the first 11 months of last year, while China’s imports from the US were worth $131bn (£106bn).
China hits back with tariffs on US goods
published at 06:33
06:33
Beijing has said it will impose retaliatory tariffs on a raft of US products.
The counter measures include a 15% tax on coal and liquefied natural gas imports from the US.
Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.
The announcement came shortly after Donald Trump’s new 10% tariffs on China came into effect.
We will bring you more updates as we get them.
What happened today?
published at 03:01
03:01
It’s been a big day in US politics. Let’s take a quick look at some of the major developments in this story:
US President Donald Trump’s proposed 25% tariffs on Canada and Mexico were paused on Monday, less than 24 hours before they were set to take effect
The pause – which is scheduled to last for 30 days – came after multiple calls between Trump and Canada’s Justin Trudeau and Mexico’s Claudia Sheinbaum
Both Mexico and Canada have agreed to ramp up border security to curb the flow of illegal immigration and drugs – priorities for Trump’s White House
Canada will appoint a “fentanyl tsar”, and Mexico will send 10,000 troops to the border as part of the deal with Trump
A 10% tariff increase on imports from China is still schedules to take effect at 00:01 EST (05:01 GMT)
