China Responds to U.S. Tariffs with Retaliatory Measures and Google Investigation
In a significant move on Tuesday, China retaliated against the United States’ imposition of tariffs by announcing its own set of tariffs on several American goods. The Chinese government also launched an investigation into Google for alleged unfair business practices.
This latest round of tariff actions marks an escalation in the ongoing trade tensions between the two countries, which had previously flared up in 2018 under President Donald Trump’s administration. This time, analysts suggest that China is better equipped to counteract the U.S.’s measures due to its developed export control regime. China holds significant leverage over U.S. industries reliant on critical minerals like gallium, germanium, and graphite.
The Chinese tariffs include a 15% levy on coal and liquefied natural gas (LNG), a 10% tariff on crude oil, agricultural machinery, and large-engine cars imported from the U.S., which will take effect on Monday. In addition to the tariffs, China also imposed export controls on key minerals such as tungsten, tellurium, bismuth, molybdenum, and indium, essential for high-tech product production and considered critical to U.S. national security.
Meanwhile, China’s State Administration for Market Regulation initiated an antitrust investigation into Google, accusing the company of violating competition laws. Although Google has a limited presence in China, having exited the market in 2010 due to censorship issues, the probe comes at a time when the U.S. tariffs on Chinese goods are set to take effect.
In a further escalation, China placed two U.S. companies—PVH Group (owner of brands like Calvin Klein and Tommy Hilfiger) and Illumina (a biotechnology company)—on its “unreliable entities” list, adding fuel to the growing economic dispute between the two nations.
