After Canada and Mexico, China Imposes Countermeasures Against U.S. Tariffs—What’s Next for Global Trade?
Tariff War Escalates: After Canada, China Strikes Back at the U.S.—What Will Trump Do Next?
U.S.-China Trade War Intensifies
The trade war between the United States and China has escalated further as China retaliates against the U.S. by imposing tariffs ranging from 10% to 15% on American products. This move comes in response to the U.S. government’s decision to impose a 20% tariff on Chinese goods. Additionally, China has filed an official complaint against the Trump administration’s tariff policies with the World Trade Organization (WTO). The Chinese Ministry of Finance has confirmed that the new tariffs will take effect from March 10.
China Imposes Tariffs on Key U.S. Imports
According to the Chinese Ministry of Finance, the new tariffs will target major American agricultural imports, including:
15% tariff on wheat, corn, and cotton.
10% tariff on sorghum, soybeans, fruits, vegetables, dairy products, and other agricultural goods.
This decision marks a significant escalation in the ongoing economic conflict between the world’s two largest economies. China’s retaliatory tariffs come directly in response to President Donald Trump’s decision to impose a 20% tariff on Chinese imports.
Global Trade War Deepens
The U.S. has not only imposed tariffs on China but has also extended them to imports from Canada and Mexico. In response, these countries have announced countermeasures:
Canada has imposed a 25% tariff on $125 billion worth of U.S. goods.
Mexico is also preparing retaliatory tariffs on American products.
With multiple nations taking similar steps, the global trade war is now in full swing. President Trump believes tariffs will help resolve economic challenges, but economists warn that such measures could lead to global inflation and economic instability.
Additionally, Trump has announced that a “reciprocal tariff” policy will take effect from March 2, further complicating international trade relations. Trump has defended his approach, stating:
“Tariffs are a powerful weapon that leaders have not used properly. They were either foolish or dishonest because they only cared about making money for themselves.”
China Imposes Sanctions on 25 U.S. Companies
In addition to imposing tariffs, China has placed export and investment restrictions on 25 American companies, citing national security concerns. According to Chinese authorities, these companies have been involved in selling weapons to Taiwan, which Beijing strongly opposes.
Furthermore, China has accused the U.S. of using its anti-drug policies as a tool for political blackmail, specifically in relation to fentanyl trade regulations.
Despite these rising tensions, trade experts suggest that China remains open to negotiations and hopes that the Trump administration will seek a diplomatic resolution. However, at this stage, Trump appears unwilling to engage in discussions.
As the trade war intensifies, all eyes are now on whether the U.S. and China can reach an agreement or if further economic retaliation will follow.
