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Home » Trade War Between China and U.S. Heats Up

Trade War Between China and U.S. Heats Up

Containers with Chinese and U.S. flags stacked opposite each other in front of a blue sky
Photo: iStock / xujun
February 10, 2025
SupplyChainBrain

China has enacted a series of retaliatory tariffs against the U.S., including 10-15% levies on imported American coal, crude oil, agricultural machinery, certain types of cars, and liquefied natural gas. 

The tariffs — which impact roughly $15-20 billion in American goods — were first announced on February 4 and came into effect on February 10, according to NPR, in response to the Trump administration's 10% levies against China, which took effect after midnight on February 4 and cover an estimated $450 billion worth of Chinese imports. China also imposed export controls on rare metals used to manufacture electrical components, and prior to that, opened an antitrust investigation into Google, and added Calvin Klein and Tommy Hilfiger parent company PVH Corp. to its "unreliable entities" list, effectively blacklisting the U.S. clothing giant and allowing the Chinese government to deport the company's employees working in the country. 

In a February 10 news conference, Chinese Foreign Ministry spokesperson Guo Jiakun warned that a trade war between the U.S. and China harms the interests of both countries, and called for an open dialogue "based on equality and mutual respect."

"We urge the U.S. side to stop its wrongful actions and refrain from politicizing and instrumentalizing economic and trade issues," he added.

President Trump has long taken a hard stance on trade with China, starting with 30% tariffs on Chinese solar panels during his first term in 2018, followed by 25% levies on a range of other Chinese products. On February 3, Trump also revoked the "de minimis" rule that exempted packages valued under $800 from duties, before pausing the suspension four days later to give the U.S. more time to put systems in place to collect tariff revenue.

Also on February 10, Trump said he will announce a 25% import tax on all steel and aluminium entering the U.S., a move that will have the biggest impact in Canada, according to BBC News.

Trump also said that there would be an announcement later in the week about reciprocal tariffs on all countries that tax imports from the U.S., but he did not specify which nations would be targeted, or if there would be any exemptions.

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