The Ministry of Commerce in China announced through official statements on February 4, 2025 that the country would commence counter-tariff measures targeting U.S. exports of coal and liquefied natural gas as well as crude oil and agricultural machinery and large-displacement vehicles. The recent U.S. tariff hikes prompted Beijing to take this action because the U.S. measures allegedly break World Trade Organization rules and break down economic ties between nations.
China will start applying new taxes effective next Monday which include 15% duties on U.S. coal and LNG shipments and 10% levies on crude oil and other specified goods. The Chinese government condemned US actions by saying these measures failed to address American issues and led to worldwide trade hindrance. U.S. officials authorized a 10% export tax increase for Chinese products for February 1, 2025 because they feared both drug trafficking and illegal migration through fentanyl.
The State Administration for Market Regulation in China started an antitrust investigation of Google because the tech company broke Chinese competition laws. The new investigation strengthens tensions between America and China which are already escalating between the two powerful economic nations. 
The trade war continues to escalate as analysts predict its impact will affect worldwide supply chain stability and economic growth potentials and businesses face additional market challenges.
