China hits back as US tariffs take effect with Beijing imposing it’s OWN hike in retaliation for Trump’s world trade war
China hits back as US tariffs take effect with Beijing imposing it’s OWN hike in retaliation for Trump’s world trade war
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CHINA has retaliated with brutal revenge sanctions after the US imposed the 10 per cent tariffs on its goods. It comes after Canada and Mexico breathed a sigh of relief after President Donald Trump shelved his punishing tariff plans for 30 days in a last-gasp deal. A mere few hours after the US taxes began, China said it was imposing 10 per cent tariffs on American crude oil, agricultural machinery, large-displacement cars and pickup trucks.
There will also be 15 per cent tariffs on coal and liquefied natural gas - as well as an investigation into Google. China added that it is imposing export controls on rare earth metals like tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items - all which are key for the transition to clean energy. But there could be room for talks, much like Trump had with Canada and Mexico, as the tariffs imposed by China won't come into effect until Monday 10 February.
The newly-inaugurated president believes the taxes were "worth the price" to stopping the manufacture and import of the deadly drug fentanyl and ending the "RIPOFF OF AMERICA". Trump added that the tariffs on China could just be the beginning - but the White House said a conversation with President Xi Jinping is due. The Republican said: "China hopefully is going to stop sending us fentanyl, and if they're not, the tariffs are going to go substantially higher.".
China has slammed Trump for the claim and described fentanyl as America's problem, adding that it would challenge the tariffs at the World Trade Organisation among other measures. China serves as a major supplier of auto parts to the US. Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data. And the US imported over a shocking $32 billion in "toys, games and sporting goods" from China last year too.
Americans also import billions of dollars worth of clothing in a year from China. It comes after Trump shelved his punishing tariff plans for 30 days for Canada and Mexico. The Republican was left celebrating after he managed to secure a stronger border with his two neighbors through a $1.3billion plan and 10,000 troops. Trump dramatically stopped entering a potential trade war with Canada and Mexico by pausing sweeping 25 per cent tax increases just hours before it was scheduled to be implemented.
Stock markets had gone into a tailspin on Monday as Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau held last-minute calls with Trump. The duo were left making a desperate bid to end any threat and halt a damaging world trade war. Trump confirmed he'd decided to pause his plans for a month after both Mexico and Canada promised to keep 10,000 frontline personnel along their American borders.
The aim is to protect the US from illegal immigration and an influx of deadly drugs entering the country. Trump praised his own negotiating skills by posting on Truth Social after his last call with Trudeau: "As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. "I am very pleased with this initial outcome.". He also said Canada will implement their $1.3billion border plan and reinforce it with new helicopters, technology and personnel.
Trump added that the next 30 days will determine if he goes ahead with the tariffs or if a "final economic deal with Canada can be structured". Justin Trudeau later confirmed these changes in alignment with Trump's wishes. Mexican President Claudia Sheinbaum also announced her administration and Trump had reached a series of similar agreements. Sheinbaum said at a news conference she had a "long conversation" with Trump on the phone on Monday.
Among the series of agreements includes Mexico's immediate action to reinforce the northern border with 10,000 members of the country's National Guard. The bolstered security presence will be tasked with preventing drug trafficking from Mexico to the United States, particularly fentanyl. The United States said it would also commit to working to prevent the trafficking of high-powered weapons into Mexico, the Mexican president said.
"Our teams will begin working today on two fronts: security and trade," Sheinbaum added. Trump also gave Sheinbaum 30 days to "achieve a deal" between the two countries. He replied on Truth Social: "I just spoke with President Claudia Sheinbaum of Mexico. "It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States.
"These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrant into our country. "I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a 'deal' between our two countries.". Earlier on in the day, Mexican, Canadian and Chinese leaders all scrambled to retaliate at the President after he signed an executive order over the weekend that would allow tariffs to start on Tuesday.