China has imposed new tariffs on US imports, just hours after Washington introduced fresh duties on all Chinese imports. The move marks a return to the tit-for-tat trade measures that characterised the first term of Donald Trump, now back in the White House.
This latest escalation echoes the US-China trade war that defined global economic relations between 2018 and 2020. While the Biden administration largely maintained Trump-era tariffs, the former president has now intensified his stance with a 10% tariff on all Chinese goods.
In response, Beijing has placed 15% duties on American coal and liquefied natural gas, alongside other economic countermeasures.
A trade war reignited
The current dispute stems from long-standing economic tensions between the world’s two largest economies. Trump’s first presidency saw a series of escalating tariffs, beginning in 2018, after Washington accused Beijing of unfair trade practices and intellectual property theft.
The dispute resulted in hundreds of billions of dollars in tariffs, peaking in January 2020 with the Phase One trade deal. However, China reportedly failed to meet its commitments under this agreement, according to research groups.
Trump’s return to the White House in 2025 has brought a swift renewal of these policies. On February 4, 2025, a 10% tariff was imposed on all Chinese imports, affecting products from electronics to consumer goods. The measure follows earlier campaign pledges to raise tariffs on Chinese goods, with Trump warning that more increases could follow.
Beijing retaliated almost immediately. According to reports, China implemented 15% duties on US coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars.
Additionally, China has taken regulatory actions against US businesses, including launching an anti-monopoly investigation into Google and adding PVH, the owner of Tommy Hilfiger and Calvin Klein, to its “unreliable entity” list.
Strategic industries caught in the crossfire
While consumer goods and raw materials have been impacted, the technology and energy sectors are at the centre of this renewed economic standoff. Under Biden, Washington imposed restrictions on semiconductor exports in 2022, limiting China’s access to advanced chip-making technology. These restrictions were expanded in 2023 and are set to tighten further in 2024.
Now, China has curbed exports of five rare metals used in defence, clean energy and advanced manufacturing, further escalating economic pressures. These materials are critical for industries such as aerospace, electric vehicles, and consumer electronics, making Beijing’s move a significant strategic response.
