China Strikes Back: 15% Tariffs on US Coal and Gas Amid Reignited Trade War

Beijing retaliates against Trump’s tariffs, launching investigations and imposing levies on critical US exports, escalating economic tensions.

February 4, 2025: China has fired back at the United States in the latest escalation of their ongoing trade war. Moments after President Donald Trump imposed a 10% tariff on Chinese goods, Beijing responded with a series of measures targeting US exports and businesses.

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Among the most notable retaliatory actions, China announced:

A 15% tariff on coal and liquefied natural gas (LNG) imports.
A 10% levy on oil and agricultural equipment from the US.
Export controls on tungsten-related materials.
An anti-trust investigation into Google, alleging violations in the Chinese market.

In addition, China has added American companies PVH Corp. (owner of Calvin Klein) and Illumina Inc. to its unreliable entity list, signaling a direct impact on US business operations in the region.

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These measures, announced by China’s State Administration for Market Regulation, underline Beijing’s determination to counter Washington’s aggressive tariff policies. The offshore yuan fell by 0.3% to 7.3340 following the announcements, while proxy currencies like the Australian and New Zealand dollars also weakened, reflecting broader market jitters.

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The Trigger

Over the weekend, President Trump ordered sweeping tariffs on Chinese exports, citing Beijing’s failure to curb the flow of illegal drugs into the US as the reason. The blanket levy was set to take effect at midnight Tuesday, with provisions for further increases if China retaliated—actions which have now materialized.

Economic Repercussions

The renewed trade tensions have cast a shadow over global markets. China’s tariffs on energy imports, such as LNG and coal, target key US exports while also signaling Beijing’s readiness to inflict economic pain. Meanwhile, China’s export controls on tungsten, a critical material in technology and defense industries, are expected to further strain supply chains.

Outlook

As the trade war escalates, both nations appear poised for a prolonged confrontation. Analysts warn of potential disruptions in global trade and economic stability, with ripple effects likely to extend beyond the two economic giants.