China hits back with targeted tariffs after Trump imposes new levies

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BY TREVOR HUNNICUTT AND KEVIN HUANG

WASHINGTON/BEIJING- China on Tuesday imposed tariffs on some US imports in a swift response to new US duties on Chinese goods, raising the stakes in a showdown between the world’s top two economies even as President Donald Trump offered reprieves to Mexico and Canada.

Additional 10 percent tariff across all Chinese imports into the US came into effect at 12:01 a.m. ET on Tuesday (0501 GMT) after Trump repeatedly warned Beijing it was not doing enough to halt the flow of illicit drugs into the United States.

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Within minutes, China’s Finance Ministry said it would impose levies of 15 percent for US coal and LNG and 10 percent for crude oil, farm equipment and the small number of trucks as well as big-engine sedans shipped to China from the United States.

China also said it was starting an anti-monopoly investigation in Alphabet Inc’s Google, while including both PVH Corp the holding company for brands including Calvin Klein, and US biotechnology company Illumina on a list for potential sanctions in China.

Separately, China’s Commerce Ministry and its Customs Administration said it is imposing export controls some rare earths and metals that are critical for electronics, military equipment and solar panels.

A 10 percent-duty China announced on electric trucks imported from the United States could apply to future sales for Elon Musk’s Cybertruck, a niche offering Tesla has been promoting in China. Tesla had no immediate comment.

China’s new tariffs on the targeted US exports will start on Feb. 10, giving Washington and Beijing some time to try and reach a deal that Chinese policymakers have indicated they hope to strike with Trump.

China’s counter measures were limited in scope compared to the Trump administration’s across-the-board tax on imports, a continuation of Beijing’s more measured response to this round of trade tensions with the United States. — Reuters

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