Trade War: China Imposes 15 Percent Tariff on Coal, LNG in Retaliation Against Trump

On Tuesday, China responded to the United States’ trade actions by imposing a 15 percent tariff on coal and liquefied natural gas (LNG) imports from the US. This move is seen as a retaliatory measure in the ongoing trade dispute between the two nations.

The tariffs follow the recent implementation of a 10 percent tariff on Chinese imports into the US, which took effect at 12:01 am ET (05:01 GMT) on Tuesday.

President Donald Trump had announced this tariff as a response to China’s failure to curb the flow of illicit drugs. The exchange of tariffs has reignited tensions and escalated the trade war between the two global powers.

In response to the United States’ trade actions, China’s Finance Ministry announced it would impose new tariffs on US exports. Starting on February 10, 2025, China will levy 15% tariffs on US coal and liquefied natural gas (LNG), 10% tariffs on crude oil, farm equipment, and some automobiles.

Additionally, China’s Commerce Ministry and Customs Administration revealed it would impose export controls on several strategic minerals, including tungsten, tellurium, ruthenium, molybdenum, and related items, citing national security interests.

China also launched an investigation into Google, accusing the company of alleged antitrust violations. This move followed the expiration of the US-imposed 10% tariff on Chinese imports, further escalating tensions in the ongoing trade war.

Meanwhile, President Trump had recently eased tensions with Mexico and Canada by temporarily suspending a threat to impose 25% tariffs, following trade talks.

However, no similar concessions have been made with China, and a White House spokesperson indicated that Trump would not speak with Chinese President Xi Jinping until later in the week.