China said Tuesday it would counter President Trump’s tariffs on Chinese products with tariffs of its own on multiple U.S. imports. It also announced an antitrust investigation into Google and other trade measures aimed at the U.S.
China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday.
“The U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization,” the statement from a Ministry of Finance office said. “It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the U.S.”
In addition, China’s State Administration for Market Regulation said Tuesday it is investigating Google on suspicion of violating antitrust laws. The announcement didn’t mention the tariffs but came just minutes after Mr. Trump’s 10% tariffs on China were to take effect.
Mr. Trump paused his plans Monday to implement steep tariffs on imports from Mexico and Canada for at least a month after talks with the leaders of both countries, who vowed to step up efforts to combat the flow of drugs and migrants across their borders with the U.S. He planned to talk with Chinese President Xi Jinping in the next few days.
In addition to the tariffs and Google probe, China announced export controls on several elements critical to the production of modern high-tech products. They include tungsten, tellurium, bismuth, molybdenum and indium, many of which are designated as critical minerals by the U.S. Geological Survey, meaning they are essential to U.S. economic or national security and have supply chains vulnerable to disruption.
The export controls are in addition to ones China placed in December on key elements such as gallium, which is used in manufacturing.
The Commerce Ministry also placed two American companies on an “unreliable entities” list: PVH Group, which owns Calvin Klein and Tommy Hilfiger, and Illumina, a biotechnology company with offices in China. The listing bars them from engaging in China-related import or export activities and from making new investments in the country.
On Saturday, Mr. Trump signed orders imposing a 25% tariff on imports from Mexico and Canada and a 10% levy on goods from China. They were to begin at 12:01 a.m. on Tuesday.Â
Mexico and Canada had both said they would issue retaliatory tariffs on U.S. imports, raising fears of a trade war that could stifle economic activity between the U.S. and its neighbors.