China hits back at Trump’s new tariffs with countermeasures

Beijing retaliates against U.S. tariffs with levies on American goods and an antitrust probe into Google.

Gantry cranes and shipping containers at the Yangshan Deepwater Port in Shanghai, China, on January 20, 2025. Photo by Qilai Shen/Bloomberg/Getty Images

By Alana Salsabila and Clarisa Sendy

China responded swiftly on Tuesday to the latest round of tariffs imposed by President Trump, unveiling a series of countermeasures targeting key American industries. The U.S. president’s executive order, which went into effect at 12:01 a.m., imposed a 10 percent tariff on all Chinese products, adding to existing levies that have fueled trade tensions between the world’s two largest economies.

In retaliation, China announced new tariffs on liquefied natural gas, coal, farm machinery, and other U.S. imports. Beijing also implemented export restrictions on critical minerals essential for high-tech manufacturing. In a further move, Chinese regulators launched an antitrust investigation into Google, a company already blocked from operating in the country but still engaged in business with Chinese firms.

These measures mark the latest escalation in a long-running trade dispute, with both sides signaling that more actions could follow. Trump has framed the tariffs as a means to pressure Beijing into cracking down on fentanyl shipments to the U.S., but China’s response suggests a broader economic and strategic counteroffensive.

The new U.S. tariffs add a 10 percent duty to over $400 billion worth of Chinese imports, on top of previous levies from Trump’s first term. Many Chinese goods already faced tariffs ranging from 10 to 25 percent, and the latest measures expand the scope of the trade conflict.

Trump had initially planned to impose tariffs on America’s three largest trading partners—Canada, Mexico, and China—but reached temporary agreements to delay actions against Canada and Mexico. The 30-day pause followed commitments from both governments to enhance oversight of fentanyl and border security, leaving China as the primary target of the administration’s latest trade policy shift.

The White House has defended the tariffs as a necessary tool to protect American industries and reduce reliance on Chinese manufacturing. Trump described the tariffs as an “opening salvo” in a broader effort to hold China accountable for its trade practices and role in the global fentanyl crisis.

China’s countermeasures and strategic positioning

Beijing’s response reflects a calculated approach to balancing retaliation with strategic restraint. The newly announced tariffs target key U.S. exports, while export restrictions on minerals like tungsten, tellurium, and molybdenum could disrupt supply chains for American tech and industrial firms.

China’s Ministry of Commerce condemned the U.S. tariffs, calling them a violation of global trade norms. “The Trump administration’s actions seriously undermine the rules-based multilateral trading system, damage economic cooperation between China and the United States, and destabilize global supply chains,” the ministry said in a statement.

The inclusion of an antitrust probe into Google adds another dimension to China’s response. While Google’s search engine, YouTube, and Play Store remain blocked in China, its Android operating system is widely used by Chinese smartphone manufacturers such as Xiaomi, Lenovo, and Vivo. By targeting Google, Beijing signals its willingness to use regulatory measures to counterbalance U.S. economic pressure.

Additionally, China placed two American companies on its “unreliable entities” list, including PVH, the parent company of Calvin Klein and Tommy Hilfiger. The move follows allegations that PVH engaged in “discriminatory measures” against products from China’s Xinjiang region, an area heavily scrutinized for human rights concerns.

The latest trade measures come amid growing concerns about U.S.-China relations, which have been strained by economic competition, military tensions, and diplomatic disputes. While the Trump administration has framed its tariff strategy as an economic tool, Beijing’s countermeasures highlight the broader geopolitical stakes of the conflict.

Trump has accused China of failing to curb the export of fentanyl and its chemical precursors, which have contributed to the opioid crisis in the U.S. His executive order cited synthetic opioids as a leading cause of death for Americans aged 18 to 45 and justified tariffs as a response to China’s alleged inaction.

China, however, insists that it has taken steps to address the issue, pointing to previous agreements with the U.S. on law enforcement cooperation. During Trump’s first term, Beijing imposed restrictions on fentanyl production, and in 2023, then-President Biden and Chinese leader Xi Jinping renewed discussions on the matter.

Future trade negotiations and potential de-escalation

Despite the escalating measures, there remains hope for de-escalation. Trump has expressed plans to speak with Xi Jinping in the coming days, though no official call has been confirmed. Analysts suggest that both sides may be positioning themselves for a prolonged negotiation process.

Bert Hofman, a former World Bank official and professor at the National University of Singapore, noted that China’s response has been measured. “As far as I can see, it’s a relatively limited response, affecting no more than 30 percent of U.S. exports to China,” he said. “They’re likely keeping their powder dry, as this could be just the beginning of further steps from the Trump administration.”

Zhiwei Zhang, chief economist at Pinpoint Asset Management, echoed this sentiment. “This is likely only the beginning of a long process for the two countries to negotiate,” he said. “There is hope for de-escalation, but the road ahead may be bumpy.”

The latest exchange of tariffs and countermeasures between the U.S. and China underscores the fragility of economic relations between the two superpowers. While Trump’s administration argues that tariffs will pressure China to change its trade practices and combat fentanyl exports, Beijing’s response suggests that it is prepared for a prolonged economic standoff.

As both sides prepare for possible negotiations, businesses and global markets remain on edge, watching for signs of either resolution or further escalation in one of the most significant trade disputes in recent history.