China Strikes Back: New Tariffs Up To 15% On Certain US Imports In Retaliation For Trump's 10% Levy On Chinese Goods China Retaliates With New Tariffs On US Imports As Trade War Escalates - Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP)

In response to the United States’ unilateral decision to impose a 10% tariff on all Chinese goods, China has announced its intention to retaliate by imposing tariffs on certain US imports.

What Happened: The State Council Customs Tariff Commission announced on Tuesday that it will be imposing tariffs on certain US imports, effective from Feb. 10. The decision comes in response to the U.S. government’s decision to levy a 10% tariff on all Chinese goods.

According to the announcement, the tariffs will be as follows:

1. A 15% tariff on coal and liquefied natural gas (LNG).

2. A 10% tariff on crude oil, agricultural machinery, high-displacement vehicles, and pickup trucks.

3. Additional tariffs will be imposed on the listed U.S. imports, on top of the existing rates. The current tax exemption and reduction policies will remain unchanged, and the additional tariffs will not be subject to reduction.

The announcement was made according to the laws of the People’s Republic of China, including the Customs Law, the Foreign Trade Law, and international legal principles. The decision was approved by the State Council.

In a separate statement, officials from the Chinese Commerce Ministry and customs announced the implementation of export controls on items related to tungsten, tellurium, ruthenium, and molybdenum.

Why It Matters: The decision by China to impose tariffs on select US imports comes in response to the US government’s decision to levy a 10% tariff on all Chinese goods. This move is part of the ongoing trade tensions between the two economic powerhouses, which have been escalating in recent years.

President Donald Trump‘s tariffs on Canada, Mexico, and China are predicted to impact several sectors and potentially lead to retailers and companies raising prices on consumers to offset the higher prices.

Renowned economist and Obama-era Treasury Secretary, Lawrence Summers, criticized President Trump's recent tariff impositions, describing them as a "bully strategy" that could have far-reaching negative impacts.

Among crude oil and LNG exporters, companies like Exxon Mobil XOM, Chevron CVX, and ConocoPhillips COP, which have significant exports to China, could see higher costs due to the new tariffs. Similarly, U.S. automakers such as General Motors GM and Ford F, which sell vehicles in China, may encounter new challenges.