Following the announcement by US President Donald Trump of a 10% tariff hike on imports from Beijing, China has responded by imposing a 15% tariff on coal and liquefied natural gas and a 10% tariff on oil and agricultural equipment from the US.

Shortly after Trump’s announcement, China’s Finance Ministry stated it would levy a 15% tariff on US imports of natural gas and coal.

Trump also imposed a 25% tariff on imports from Canada and Mexico, a decision that will be reviewed within 30 days. However, no such review has been scheduled for China’s tariffs, and Trump is reportedly set to meet Chinese President Xi Jinping later this week.

On Saturday, Trump announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods. He hinted that the European Union (EU) could be next, citing the bloc’s persistent trade surplus with the US.

In response, the European Commission criticised the move on Sunday and vowed to retaliate if targeted.

“The European Union regrets the US decision to impose tariffs on Canada, Mexico, and China,” an EU spokesperson said.

The spokesperson emphasised the importance of “open markets and adherence to international trade rules,” describing them as essential for strong and sustainable economic growth. “Tariffs cause unnecessary economic disruption and drive inflation, harming all parties involved,” he added.

Referring to potential US tariffs on EU products, the spokesperson warned, “The EU will respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.”

“Our trade and investment relationship with the United States is the largest in the world. There is much at stake,” he concluded.

(With inputs from syndicated feed)

Also read :

Trump 2.0 tariff hikes go into effect, presaging a global trade war