- China imposes retaliatory trade tariffs against the US
- 15% on coal and liquefied natural gas from the US
- 10% higher duties on U.S. crude oil, farm equipment and transportation
- Export controls on minerals including tungsten, tellurium, molybdenum, and ruthenium
Donald Trump’s trade war and the tariffs he imposed have prompted a symmetrical response from China. Namely, China’s Ministry of Commerce, in conjunction with customs authorities, announced tariffs on a number of imports from the U.S. such as coal, gas, oil, and some equipment. They are also imposing increased export controls on critical metals and minerals including tungsten, tellurium, molybdenum, and ruthenium.
China’s Retaliatory Export Controls and Tariffs
Recall that Donald Trump announced 25% trade tariffs against Canada and Mexico, but they received a one-month reprieve. Perhaps the countries will work out a solution on how to avoid the imposition of these tariffs. However, Trump remained stricter on China and they did not get any reprieve.
China’s response was not long in coming. According to CNBC, China’s Ministry of Commerce, along with customs officials, announced that the U.S. expects retaliatory measures. These are not empty threats because, for all the confrontation, trade between the U.S. and China has a very high turnover and includes critical assets.
Specifically, tariffs on imports include 15% on coal and liquefied natural gas from the U.S., as well as 10% higher duties on U.S. crude oil, farm equipment, and transportation. The tightening has also affected exports, namely increased controls on exports of metals and minerals like tungsten, tellurium, ruthenium, and molybdenum.
Conclusion
Unlike quick settlements and postponements for other countries, the trade war between the US and China is more fundamental and the assets they trade are of strategic importance to each side.
Of course, it’s not just about open confrontation, but potential as the accumulation of Bitcoin and other cryptocurrencies seems to be affecting every possible market.
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