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NRIPage | Articles | US-China Trade War Reignites with New Tariffs and Retaliation | Get General Articles. Stay Informed on a World of Topics - NRI Page
The trade war between the world's largest economies has flared up once again. In response to President Trump's 10% tariff on Chinese goods, China has imposed a series of countermeasures, including a 15% tariff on US coal and liquefied natural gas (LNG) exports, alongside a 10% fee on US oil and agricultural equipment.
In a move that could further complicate relations, China has launched an antitrust investigation into Google and placed major US companies like PVH Corp. and Illumina Inc. on a blacklist. These actions come in the wake of the US administration’s decision to impose tariffs, accusing China of failing to curb the flow of illegal drugs.
China’s response has been described as "measured," designed to avoid significant damage to its own economy while signaling its ability to hurt key US industries. The tariffs target critical areas, such as tungsten—a metal essential for military-grade equipment—while also pressuring US firms with substantial operations in China.
Despite the heavy blow to global trade, market reactions have remained relatively calm, with the Chinese yuan and other Asian currencies slipping in response. Observers are hopeful that a diplomatic resolution is still within reach, particularly after President Trump signaled plans for talks with Chinese President Xi Jinping.
This latest chapter in the trade saga highlights the delicate balance between economic retaliation and the desire for diplomacy, with both sides gearing up for high-stakes negotiations in the coming weeks.
