US Tariffs Hit China; Beijing Responds With Counter-Tariffs

Shipping containers and gantry cranes are seen at Qingdao port in Qingdao, in eastern China's Shandong Province, on Dec. 26, 2024. STR/AFP via Getty Images

The 10 percent tariffs ordered by President Donald Trump on all goods imported from China went into effect on Tuesday, with Beijing responding with counter-tariffs on the same day.

The new levies on China are in addition to those imposed by Trump during his first administration, which range from 10 percent to 25 percent for various goods.

China’s Ministry of Commerce announced Tuesday it was implementing counter tariffs on multiple U.S. products, while announcing other trade-related measures, including an investigation into Google.

The communist regime said it would implement a 15 percent tariff on coal and liquified natural gas products, as well as a 10 percent tariff on crude oil, agricultural machinery, and large-displacement cars.

China’s State Administration for Market Regulation on Tuesday also announced—minutes after Trump’s 10 percent tariffs took effect—it is investigating Google on suspicion of violating antitrust laws.

Tariff Guidance 

U.S. Customs and Border Protection officials issued guidance on Monday to explain the new tariffs, and now the rules affect packages coming to the United States from China, including products from Hong Kong.

Exemptions previously allowed for low-value items—below $800—under so-called “de minimis” rules are no longer permitted.

The taxes do not apply to items intended for donations to relieve human suffering or to certain media products—including films, publications, and other informational materials.

All other products—including electronics, consumer goods, automotive, health and medicine, food and agriculture, energy, and automotive, among other industrial and manufactured items—are subject to the fees.

Driven by Fentanyl

Trump signed an executive order on Saturday imposing the tariffs on China as a response to the manufacture and distribution of chemicals that criminal networks can turn into fentanyl.

“[T]he Chinese Communist Party (CCP), which exerts ultimate control over the government and enterprises of the [People’s Republic of China], has subsidized and otherwise incentivized [Chinese] chemical companies to export fentanyl and related precursor chemicals that are used to produce synthetic opioids sold illicitly in the United States,” the order declares.

Trump accuses the communist regime of providing support and “safe haven” for criminal networks known to launder profits from the sale of fentanyl products.

Packets of fentanyl, mostly in powder form and methamphetamine, which U.S. Customs and Border Protection say they seized from a truck crossing into Arizona from Mexico, are on display during a news conference at the Port of Nogales, Ariz., on Jan. 31, 2019. U.S. Customs and Border Protection/Reuters

Nearly 550,000 pounds of fentanyl—enough to kill nearly 111 billion people, according to calculations from the Drug Enforcement Agency—was seized by law enforcement at the nation’s borders in each of the last three years, according to the order.

“The influx of these drugs to our Nation threatens the fabric of our society,” Trump wrote in the order. “The [Chinese Communist Party] plays a central role in this challenge, not merely by failing to stem the ultimate source of many illicit drugs distributed in the United States, but by actively sustaining and expanding the business of poisoning our citizens.”

After demanding China stem the flow of fentanyl during his first term and not satisfied with the response, the president is now taking a harder line.

“China will be dealt with,” Trump said. “China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher.”

When the president first imposed tariffs on China during his first administration, Chinese officials responded with retaliatory measures, including levies on pork, beef, and other agricultural products.

Chinese representatives have also challenged the trade policies during World Trade Organization hearings, and the country’s commerce ministry has signaled again its intention to do so regarding the latest round of tariffs, suggesting in an announcement that the United States should solve its own problems.

President Joe Biden’s Administration kept the Trump tariffs in place and hiked the rates in some instances, including 100 percent for electric vehicles and 50 percent for semiconductors.

A call with Beijing is expected in the coming days, according to White House press secretary Karoline Leavitt.

It is unclear if Trump will also discuss the Panama Canal, a point of contention for the newly inaugurated leader.

Trump has repeatedly said he is unhappy with China’s control of the vital waterway.

“China’s involved in the Panama Canal, and they won’t be for long,” Trump said. “And that’s the way it has to be.”

The governments of Mexico and Canada responded quickly to Trump’s threats of 25 percent fees on products sold to the United States if the flow of illegal immigration and fentanyl did not stop.

Executive orders signed simultaneously with that for China directed the taxes to begin on Feb. 4, but last-minute agreements between the United States and the two neighbors postponed the implementation for 30 days.

Canadian Prime Minister Justin Trudeau and Mexico’s President Claudia Sheinbaum told Trump they are sending 10,000 troops each to patrol the border and stop fentanyl trafficking.

Additionally, Canada is investing $1.3 billion in border security and another $200 million to fight narcotics trafficking.

Trump said no deals have been made regarding removing the tariffs, and more negotiations are underway.

“Tariffs are very powerful, both economically and in getting everything else you want,” Trump said. 

The Associated Press contributed to this report.