China counters Trump, imposes 15% tariff on US imports
What's the story
In retaliation to President Donald Trump's recent tariff measures against Beijing, China has announced new tariffs on United States imports.
The Chinese government announced a 15% tariff on coal and liquefied natural gas from the US, and a 10% tariff on oil and agricultural equipment.
The decision comes shortly after Trump imposed a 10% tariff on Chinese goods, citing Beijing's failure to curb illegal drug flows as the reason behind his move.
Additional measures
China investigates Google, imposes export controls
Along with the new tariffs, China has also launched an investigation against Google for alleged anti-trust violations.
The State Administration for Market Regulation announced the move as part of wider measures, including export controls on tungsten-related materials.
PVH Corp., owner of Calvin Klein, and Illumina Inc have also been added to China's unreliable entity list in the wake of rising trade tensions.
Currency fallout
Trade tensions impact currency markets
The rising trade tensions have also affected the currency markets. The offshore yuan dropped 0.3% to 7.3340 against the dollar as these developments unfolded.
These currency fluctuations came after Trump's weekend orders for tariffs came into effect at midnight Tuesday in the US.
However, Trump has paused planned tariffs on Canada and Mexico for 30 days.
Following this news, the Indian rupee opened higher at 87.0300 against the US dollar after closing at 87.1950 the previous day.
New levies
Trump's tariffs on Canada, Mexico, and China
Trump's new tariffs include 25% levy on Canadian and Mexican goods and 10% levy on Chinese products.
These are part of his plan to tackle illegal immigration and drug trafficking concerns.
Energy imports from Canada will face a reduced 10% tariff to lessen impacts on gasoline and home-heating oil prices.
The auto industry has raised concerns over the impact of these tariffs as US-Canadian manufacturing is integrated.
Retaliatory measures
Canada plans retaliation, targets Tesla
In retaliation to Trump's tariffs, Canada plans to impose its own tariffs on American goods. The focus will be on products that have available alternatives in Canada.
Former Canadian Finance Minister Chrystia Freeland suggested targeting Tesla vehicles with a 100% tariff as part of these retaliatory measures.
The situation remains tense as both countries brace for further economic impacts from these sweeping trade measures.