After the new tariffs on Chinese goods by the United States took effect, China immediately implemented four retaliatory trade measures against the US. Experts have analyzed that these retaliatory measures from Beijing have limited impact on the US and are more for domestic propaganda purposes. In reality, the trade war disproportionately harms China, and Trump’s major moves are yet to come, suggesting that China’s countermeasures serve a different agenda.
On Tuesday (February 4th), China rolled out four countermeasures against the US, including imposing tariffs of 10% or 15% on certain goods; conducting an antitrust investigation on Google; blacklisting two major US companies and imposing export controls on five categories of metals.
Regarding the tariffs, China’s Customs Tariff Commission of the State Council announced that starting from February 10th, additional tariffs would be imposed on some imported goods from the US: coal and liquefied natural gas would face a 15% tariff, while crude oil, agricultural machinery, high-capacity cars, and pickups would face a 10% tariff.
Earlier, on February 1st, US President Trump signed an executive order directing the imposition of a 25% tariff on imported products from Mexico and Canada starting on Tuesday, as well as imposing a 10% tariff on Chinese goods to address the national emergency caused by fentanyl and illegal immigration into the US.
However, on Monday (February 3rd), Trump reached agreements with Canada and Mexico to temporarily postpone the implementation of tariffs for a month. The 10% tariff on China went into effect at midnight Eastern Time on Tuesday.
Analysts interpret that Beijing’s actions are intended as retaliation against the US, but their impact is limited. The measures are seen as more of a show for domestic audiences.
Professor Xie Tian from the University of South Carolina’s Aiken School of Business told a Chinese media outlet that China’s so-called counterattacks are actually weak and somewhat absurd. He mentioned that with regards to Google, the company has minimal operations in China, so Chinese sanctions may not have much effect. Xie Tian believes that China is merely trying to save face domestically and show that it is not afraid of the US.
On the purported measures against automotive and agricultural machinery sectors, China is already a major producer and does not heavily rely on imports from the US. As for energy, China has significant demand, and imposing tariffs could impact its domestic economy, leading to a situation where both sides suffer losses.
In terms of the trade statistics between the US and China, the US faced a trade deficit of 14% in 2024 compared to the previous year, reaching $1.2117 trillion, with China being the largest importer followed by the EU and Mexico.
China’s Customs Administration released data showing that the trade surplus in December 2024 surpassed $100 billion and nearly approached $1 trillion for the entire year.
In terms of the US-China trade, China exported goods worth $524.656 billion to the US in 2024 but only imported $163.624 billion from the US.
Xie Yao Yuan, a professor of international studies at the University of St. Thomas in the US, noted that Trump’s initial increase in tariffs was aimed at softening postures on various issues, including fentanyl, trade balance, and security dialogues between the US and China.
The article continues with in-depth analysis from experts and scholars, exploring the intricacies of the trade war and diplomatic relations between the US and China. It delves into the potential consequences of the ongoing tensions and the strategies employed by both countries in navigating this complex international landscape, shedding light on the broader implications of their actions on the global economy and geopolitical dynamics.