ABC News
BEIJING, CHINA – China announced new tariffs on American imports Tuesday, shortly after
U.S. President Donald Trump’s latest tariffs on Chinese products took effect, increasing trade
tensions.
China will impose a 15% tariff on coal and liquefied natural gas, plus a 10% tariff on crude oil,
agricultural machinery, and large-engine cars from the U.S. These tariffs will begin next
Monday.
“The U.S.’s unilateral tariff increase seriously violates WTO rules,” China’s State Council Tariff
Commission said. “It damages normal economic and trade cooperation between China and the
U.S.”
The effect on U.S. exports is expected to be limited. Although the U.S. is a major liquefied
natural gas exporter, it sends little to China. In 2023, China accounted for only 2.3% of total U.S.
natural gas exports, according to the U.S. Energy Information Administration.
The tariff on large-engine cars may impact American automakers like General Motors and Ford,
which sell models such as the Chevrolet Tahoe and Ford F-150 Raptor in China. China imported
fewer than 110,000 U.S. vehicles last year, but analysts say the tariff could still hurt sales.
China’s response appears calculated to apply pressure on the U.S. while limiting harm to its
economy.
“This could be the start of a trade war, leading to slower global growth, higher U.S. inflation, and
rising interest rates,” said Stephen Dover, chief market strategist at the Franklin Templeton
Institute.
The tariffs come as Trump agreed to delay a similar tariff increase on Canadian and Mexican
imports for 30 days, citing ongoing negotiations. The White House said Trump will soon speak
with Chinese President Xi Jinping.
“It is being scheduled and will happen very soon,” said White House Press Secretary Karoline
Leavitt on Tuesday