China to Impose Retaliatory Tariffs on the US Starting Tomorrow: No End in Sight for US-China Trade War

US-China Trade Tensions Escalate as China Moves Forward with Tariff Hike Amid Uncertainty Over Resolution

As of tomorrow, China is set to impose retaliatory tariffs on certain US imports, signaling an escalation in the ongoing US-China trade war. Despite expectations for a resolution, signs of a breakthrough remain elusive.

According to recent reports from Chinese and US media, China announced on February 4th that it would begin levying additional tariffs of 10-15% on select US goods starting February 10. This new tariff plan includes a 15% levy on US coal and liquefied natural gas (LNG), as well as a 10% tariff on oil, agricultural machinery, and large automobiles, including pickup trucks.

The announcement follows a recent move by the Trump administration to impose a 10% tariff on Chinese imports. This decision came in response to China’s inadequate handling of the fentanyl crisis, a major point of contention between the two nations. Within minutes of the US decision, China retaliated by introducing a range of measures, including investigations into Google’s antitrust violations, restrictions on the export of tungsten and tellurium, and sanctions against several US companies like PVH Group and Illumina.

Although China’s retaliatory measures seem numerous, they are not seen as particularly damaging in the short term. There were speculations that the two countries might resolve the issue through negotiation before China implemented the new tariffs. On February 3, President Trump expressed hopes for a swift resolution, stating that he anticipated a call with Chinese President Xi Jinping within 24 hours to discuss the situation. However, the meeting did not materialize as quickly as expected. Trump later clarified that he was not in a rush to speak with Xi, signaling the difficulty in finding common ground.

The situation is further complicated by Trump’s stance on tariffs against allied nations. He has granted a temporary exemption to Canada and Mexico from the 25% tariffs set to take effect on February 10. At the same time, Trump is threatening to escalate the trade war further by imposing reciprocal tariffs on a broader range of countries. This would involve the US matching tariffs imposed by other countries on US goods, a strategy that Trump has previously championed during his election campaign.

An analysis by the South China Morning Post suggests that President Xi Jinping is hesitant to engage in hasty phone calls with Trump. While Trump, operating with a business-minded approach, is eager to reach a quick agreement on tariffs, Xi and other Chinese leaders are more cautious. They want to first determine the specifics of the negotiations and what China can offer before committing to a high-level discussion.

Dominic Chew, a senior analyst at Eurasia Group, explained that Chinese leadership requires more time to fully understand the objectives behind Trump’s tariffs and to assess whether any proposals from China would be acceptable to the US. He emphasized that China’s reluctance to engage in an immediate conversation does not necessarily mean a lack of willingness to negotiate or reach a settlement.

As tensions continue to rise between the two largest economies in the world, the US-China trade war shows no signs of abating. With both nations preparing for further tariffs and countermeasures, the global economy remains on edge, waiting for a resolution that may seem increasingly distant.