The US-China trade war has reignited with fresh tensions as both nations impose new tariffs and launch retaliatory measures. In a swift response to President Donald Trump’s latest move—slapping a 10% tariff on Chinese imports—Beijing announced its own set of countermeasures, intensifying the economic standoff between the world’s two largest economies.
China’s State Administration for Market Regulation (SAMR) revealed on Tuesday that it has initiated an anti-trust investigation into US tech giant Google. This move adds another layer of complexity to the ongoing trade dispute, signaling Beijing’s willingness to directly challenge American corporations.
In addition to targeting Google, China announced new tariffs on a range of American goods:
15% duties on coal and liquefied natural gas (LNG)
10% tariffs on crude oil and agricultural equipment
Further escalating the conflict, Beijing is also implementing export controls on tungsten-related materials and has added PVH Corp. (owner of Calvin Klein) and Illumina Inc. to its “unreliable entity list.” These measures could significantly impact American businesses that rely on Chinese supply chains.
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The offshore yuan took a hit in the wake of these announcements, dropping 0.3% to 7.3340 per dollar. With mainland markets closed due to the Lunar New Year holiday, offshore trading was the primary gauge of investor sentiment.
Meanwhile, currencies tied closely to China’s economic health, such as the Australian and New Zealand dollars, also saw sharp declines—falling by at least 0.8%. These drops reflect growing concerns about how prolonged trade tensions will impact global trade and economic stability.
Over the weekend, President Trump ordered sweeping tariffs on all Chinese exports, set to take effect after midnight on Tuesday.
He justified the move by citing China’s failure to curb the flow of illegal drugs into the US. However, the executive order also included a retaliation clause—meaning that if China countered with its own tariffs, US duties would automatically increase further.
With both sides refusing to back down, this latest escalation in the US-China trade war is likely to send shockwaves through global markets in the days to come.
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