15% Additional Tariffs on US Coal and LNG... 10% on Crude Oil and Agricultural Machinery
Google Investigated by Chinese Authorities... US Fashion Companies Included in 'Unreliable Entities' List
Why China's Tungsten Export Ban Is Alarming
Possibility of Dramatic US-China Dialogue Resolution
As the United States' policy of imposing an additional 10% tariff on China took effect at midnight on the 4th (local time), China retaliated by announcing tariffs of 10-15% on certain American products. The Chinese government also launched an investigation into the US tech giant Google for alleged antitrust violations. However, since China set the implementation date for its retaliatory tariffs as the 10th, there remains a possibility of a dramatic resolution through dialogue between the US and China.
15% Additional Tariffs on US Coal and LNG... 10% on Crude Oil and Agricultural Machinery
According to foreign media such as Bloomberg and the South China Morning Post (SCMP), the State Administration for Market Regulation of China announced on the 4th that starting from the 10th, it will impose an additional 15% tariff on US coal and liquefied natural gas (LNG), and a 10% tariff on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. The State Administration for Market Regulation is the agency responsible for domestic market and consumer protection, as well as antitrust regulation, equivalent to South Korea's Fair Trade Commission.
In its statement on the same day, the Chinese government criticized, "The US's unilateral imposition of tariffs is a serious violation of World Trade Organization (WTO) rules," adding, "This measure not only fails to help resolve the US's issues but also undermines normal economic and trade cooperation between the US and China."
China's move was announced immediately after the US tariffs took effect. This contrasts with the situation of Mexico and Canada, which secured a separate agreement exempting them from the 25% tariff for one month.
Google Investigated by Chinese Authorities... US Fashion Companies Included in 'Unreliable Entities' List
China also announced it would investigate Google for alleged antitrust violations. Chinese news outlet Jiemian News reported, citing the State Administration for Market Regulation, that a formal investigation into Google has been initiated according to the law.
Bloomberg noted, "China reignited the trade war between the world's two largest economies by announcing an investigation into Google and imposing new tariffs on various US products immediately after President Trump imposed a 10% tariff on imports from Beijing."
The Chinese Ministry of Commerce also added two US companies?the fashion group PVH, which owns famous brands like Tommy Hilfiger and Calvin Klein, and the biotechnology firm Illumina?to its 'unreliable entities' list. The Ministry of Commerce is responsible for trade and investment policies, as well as import-export regulations, playing a role similar to South Korea's Ministry of Trade, Industry and Energy and Ministry of Foreign Affairs.
Why China's Tungsten Export Ban Is Alarming
China also controls exports of strategic minerals such as tungsten, molybdenum, and bismuth. Bloomberg explained, "China's restriction on tungsten exports may seem limited to specific sectors, but its impact will be significant," adding, "This superhard metal is essential for manufacturing weapons and semiconductors, with China accounting for over 80% of global supply, putting the US in a difficult position." Currently, the US meets 25% of its tungsten demand from China.
There are also views that it will be difficult for the US to find alternative sources for tungsten. Russia, a target of US containment and currently embroiled in war, is considered not a viable alternative. Molybdenum, regarded as a substitute for tungsten, is also subject to China's export controls.
Possibility of Dramatic US-China Dialogue Resolution
However, some speculate that channels for dialogue between the US and China remain open. China's setting of the retaliatory tariff implementation date to the 10th may indicate an intention to negotiate with the US. Therefore, the possibility of a dramatic 'compromise' before the 10th cannot be ruled out. The Wall Street Journal (WSJ) reported on the 3rd (local time) that the Chinese government is preparing negotiations to prevent the Trump administration's tariff hikes and technology sanctions. President Trump also told reporters at the White House that "(We will) probably talk within 24 hours" with China.
President Trump signed an executive order on the 1st imposing a 25% tariff on Mexico and Canada and an additional 10% tariff on China, stating, "This is not a negotiating tool." However, he later reversed course and postponed the tariffs on Canada and Mexico scheduled for the 4th (local time) by 30 days. Canada promised to establish a 'Fentanyl Czar' to prevent drug inflow into the US and designate drug trafficking organizations as terrorists. Claudia Sheinbaum agreed to immediately deploy 10,000 soldiers along the border separating Mexico and the US.
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