China’s Retaliatory Tariffs on $14 Billion in US Goods Now in Effect
In tit-for-tat to US President Donald Trump’s tariff threats, China has imposed retaliatory tariffs on approximately $14 billion worth of US goods, escalating the trade war between the world’s two largest economies, the Financial Times reported.
Beijing announced its tariff plan on February 4, minutes after new US levies of 10% on all Chinese products took effect. Trump had called these tariffs as an “opening salvo” in a renewed trade offensive against China.
Unlike the blanket tariffs imposed by the US, China’s countermeasures—ranging from 10% to 15% levies—target key American exports, including liquefied natural gas, coal, crude oil, farm equipment and certain automotive products. Analysts view Beijing’s approach as leaving room for potential negotiations to prevent a broader trade war.
However, by Sunday’s deadline, no agreement had been reached. China’s embassy in Washington confirmed that the tariffs took effect at 12:01 a.m. Beijing time on Monday (11:01 a.m. Sunday in Washington, D.C.), according to reports.
Starting February 10, China will impose a 15% border tax on U.S. coal and liquefied natural gas imports, alongside a 10% tariff on American crude oil, agricultural machinery, and large-engine vehicles.
Trump slaps new 25% tariffs on Canada for steel and aluminum on March 4th. Canada is the USA's largest importer of both products. The USA does not have the domestic capacity to replace either of these imports.
Canada is waiting for the offical US declaration to be published before likely reacting with retaliatory tariffs.
Current Canadian thinking is that Trump needs to find a way to replace the US treasury's income from potential corporate tax cuts. He thinks tariffs, which are paid direclty to the US treasury, will fund these tax cuts.
Effectively, the average American will pay for any corporate tax cuts via higher prices in the USA.
The famous American WWII aircraft, the Mustang, was 100% made from Canadian aluminum.
Canada is preparing for the 25% tariffs at the end of this month. While Canada will do it's best to avoid this unwanted trade war, every day Canadians are turning away from products made in the USA.
As hard as these tariffs will hurt Canada, Canada will hit the US back just as hard. Americans will feel the pain of price increases.
The only way to deal with a bully, which is what Trump is, is to punch him back right in the nose.
People on both sides of the border are going to be tariff-ied.
Trump 2.0 tariifs have gone into effect against China.
For the printer/copier/parts/toner industry in the USA prices for consumers could soon rise by 10%.
Many Japanese printer/ copier OEMs have been trying for the last few years to diversify their manufacturing facilities away from China.
China has retailated but in a much more muted way with new tariffs starting Feb 10th. China has targeted approx $20B of US imports vs the US targeting $450B worth of Chinese imports.
The Ministry of Commerce and China’s customs administration also announced new export controls effective immediately on more than two dozen metal products and related technologies. Those include tungsten, a critical mineral typically used in industrial and defense applications, as well as tellurium, which can be used to make solar cells.
Beijing has also signaled its intention to avoid a spiraling trade war like the one seen during Trump’s first term in office. At that time, the White House slapped tariffs on hundreds of billions of US imports from China, while Beijing retaliated.
China has diversified its economy and trade partners since that time, but its export-reliant economy is grappling with slowing growth and other challenges.
There is also the strong probability that what Trump 2.0 attempted to do with tariffs were illegal. Trump invoked emergency economic powers when there was no emergency. The US has low unemployment, low inflation, a strong stock market and the highest GDP growth rate in the world.
The fact that Trump 2.0 came within an inch of a brutal, damaging trade war with it's two peaceful neighbours is not a case of no harm, no foul. The fact that Trump 2.0 decided to ignore the binding USMCA trade agreement that he signed indicates that the USA may no longer be considered a trustworthy partner. The US is now in an immeasurably weaker negotiating position than it was a week ago.
Trump 2.0 today basically secured a trade deal that was already in place by Canada in Dec 2024 with a few minor concessions. The art of the deal by Canada!
This trade chaos is not over because China has launched legal action against the USA with the Word Trade Organization because Trump 2.0 launched a major trade war without proper reasons.
Part of the Mexico 2025 agreement that Trump did not mention was that the US agreed to curtail the flow of US guns into Mexico which are used in most crimes in Mexico.
The previous deployment of Mexican national guard troops to the border under President Biden in 2021 was unsuccesful because most of the fentanyl smuggled into the USA is by US citizens. US citizens get less border scrutiny when reentering the USA from Mexico. In 2023, 86.4% of fentanyl arrests were US citizens.
Mexican national guard troops cannot stay at the border forever and most are deployed acrosss the length of the border, not necessarily where US criminals are crossing the border.
President Biden also got the Mexican gov't to commit $1.5B to improve it's border security with the same number of troops without the chaos Trump 2.0 caused. No similar commitment from Trump.
Due to Trump's shallow, narcissistic and fragile ego, the Mexican President will not be doing any victory laps.
I was wrong in my previous post stating that 15,000 Mexican guard troops were deployed to the border under President Biden. That was Trump's work in his first term around 2019. Like Trump in 2025, 10,000 Mexican guard troops were deployed to the border under President Biden in 2021.
The Maga media will of course obfuscate all of these facts to promote their narrative that Trump is the greatest statesman ever.
Mexico caving is Trump's and Fox New's spin on the deal. President Biden reached the same agreement years ago for 15,000 Mexican troops on the border. In reality, Trump caved.
Prime Minster Trudeau's 2nd call with Trump today failed to reach an agreement.
Trump continues to preposterously argue that Canada should become the 51st state. What started as a dinner joke is now an insult to Canada.
At 9:00 AM tomorrow, the USA will launch an unjustified trade war on Canada and Canada will retaliate.
Hopefully, Trump will tweet tonight that he has changed his mind as he is about to wreck the US domestic auto industry.
Not sure where you get your news from, however during the day I don't listen to FOX news while driving. Was on the radio this AM. If Mexico out the troops under Biden they surely didn't do the job. Tariffs make a difference
The prime minister made a series of new commitments to Trump, including a promise to appoint a new fentanyl "czar" who will lead Canada's efforts to crack down on the deadly drug. And he promised to list Mexican cartels, one of the top purveyors of fentanyl and other drugs in Canada and the U.S., as terrorists under Canadian law.
Trudeau said Canada is launching a "Canada-U.S. Joint Strike Force," that will be tasked with combating organized crime and money laundering.
"Proposed tariffs will be paused for at least 30 days while we work together," Trudeau said in a social media post.
Mexico caving is Trump's and Fox New's spin on the deal. President Biden reached the same agreement years ago for 15,000 Mexican troops on the border. In reality, Trump caved.
Prime Minster Trudeau's 2nd call with Trump today failed to reach an agreement.
Trump continues to preposterously argue that Canada should become the 51st state. What started as a dinner joke is now an insult to Canada.
At 9:00 AM tomorrow, the USA will launch an unjustified trade war on Canada and Canada will retaliate.
Hopefully, Trump will tweet tonight that he has changed his mind as he is about to wreck the US domestic auto industry.
Mexico caved today and will sent 10K troops to the border. That is the reason fo the delay, Trump wants to make sure Mexico will do what it says and free the avacados.
Mexico announces Trump tariffs will be delayed for one month.
Final meeting between Trump & Trudeau is today at 4:00 PM.
Trump's new talking point is how Canada bars US banks from operating personal banking operations in it's country. US and Canadian banks have cooperated on commercial banking interests for many years.
As of Feb 4th, Canada has not listed copier/ printers/ toners/ parts imported from the USA as subject to 25% tariffs.
The 2nd tariff list is due 21 days later so that supply chains have a chance to adjust.
The USA has started a trade war against it's greatest ally on reasons not based on facts. The offical US gov't numbers about the amount of fetanayl and ilegal aliens entering the USA from Canada is so small ( 0.01%) compared to Mexico, that this is all a smoke screen for something else.
Canada has just spent $1.3B to improve border security.
Illegal cocaine & gun imports from the USA into Canada are way down with several recent major busts. Fetanayl imports into Canada from the USA are way down.
Canadians are already starting to boycott American made products and US liquor is being removed from store shelves across the country. Signs are going up everywhere to help consumers buy products made in Canada.
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