Beijing: Beijing imposed targeted tariffs on U.S. imports on Tuesday, including coal, liquefied natural gas (LNG), and select vehicles, in response to President Donald Trump’s 10% levy on all Chinese imports. The move was seen as a measured effort to maintain dialogue and avoid a full-blown trade war between the world’s two largest economies.
China’s tariffs, which impact approximately $20 billion of U.S. goods annually, are significantly smaller in scale compared to the $450 billion worth of Chinese goods now subject to U.S. tariffs. Analysts noted that Beijing’s response was designed to send a message without escalating tensions.
Despite the rising economic friction, Trump is expected to speak with Chinese President Xi Jinping later this week, aiming to diffuse the situation. Additionally, Trump’s administration temporarily suspended a threatened 25% tariff on Mexico and Canada, allowing for a 30-day negotiation period focused on border security and crime issues.
Meanwhile, Trump hinted that the European Union could be the next target for trade measures. In response, European Commission President Ursula von der Leyen emphasized Brussels’ readiness for tough negotiations while expressing a desire for a stronger partnership with the U.S.
China’s calibrated response, which also included potential sanctions on American companies like Google, underscores its cautious approach as it navigates the unfolding trade tensions. However, both sides face increasing pressure to find a resolution to safeguard their economies and global markets.