China Retaliates Immediately Against Trump: 10-15% Tariffs on U.S. Coal, Oil, and More

China Imposes Export Controls and Launches Antitrust Investigation Against Google

China has swiftly responded to the Trump administration’s imposition of a 10% additional tariff on Chinese imports by announcing its own retaliatory tariffs on U.S. goods. The measures, which include 10-15% tariffs on U.S. coal, crude oil, and liquefied natural gas (LNG), mark the latest escalation in the ongoing trade war between the world’s two largest economies. Alongside these tariffs, China has launched an antitrust investigation against Google and introduced export controls on critical raw materials.

China’s State Council Tariff Commission announced on February 4 (Beijing time) that it will implement these additional tariffs on certain U.S. imports starting February 10. The commission stated that the U.S. tariff actions, effective from midnight Eastern Time on the same day, “seriously violate WTO regulations” and “undermine normal economic and trade cooperation between China and the United States.”

Targeted U.S. Goods: Energy and Industrial Products

The new tariffs will affect a range of U.S. goods, particularly energy-related items and large machinery. LNG and coal imports will face a 15% tariff, while crude oil, agricultural machinery, and large vehicles such as pickup trucks and high-displacement automobiles will be subject to a 10% tariff. The commission clarified that these tariffs will be added to existing duties, with no exemptions or reductions applied under current bonded or duty-free policies.

Bloomberg reported that in 2024, U.S. LNG accounted for approximately 6% of China’s total LNG imports, indicating that these measures could significantly impact U.S. energy exports to China.

Export Controls on Critical Raw Materials

In a parallel move, China’s Ministry of Commerce announced export controls on vital raw materials, including tungsten, bismuth, molybdenum, tellurium, and indium. The ministry stated that these controls are intended to “protect national security and interests” and to fulfill international obligations related to non-proliferation. Exporters of these materials will now be required to obtain special permits under China’s Export Control Law and the "Dual-Use Item Export Control List."

These measures reflect China’s strategic leverage over rare and essential resources, as many of the listed materials are crucial for high-tech manufacturing and defense applications globally.

Antitrust Investigation Against Google

China has also initiated an antitrust investigation against Google. According to reports from Chinese media outlet JiMian News, the State Administration for Market Regulation (SAMR) has formally launched the investigation. While Google ceased providing search and internet services in China in 2010, it maintains a significant presence in the country through its advertising business. The investigation adds another layer of tension between the two countries, targeting one of America’s largest technology companies.

Unreliable Entity List Expands

China further escalated its response by adding two major U.S. companies, PVH Corp. (owner of brands like Tommy Hilfiger and Calvin Klein) and biotechnology firm Illumina, to its “unreliable entity” list. The Ministry of Commerce accused these firms of violating market principles and discriminating against Chinese businesses. This designation imposes restrictions on their activities in China and was implemented immediately.

Legal Actions Against U.S. Tariffs

China has also filed a formal complaint with the World Trade Organization (WTO) to challenge the legality of the U.S. tariffs. A spokesperson for China’s Ministry of Commerce condemned the U.S. measures as “a typical example of unilateralism and protectionism,” urging Washington to “correct its wrongful actions immediately.” The ministry emphasized that the tariffs not only harm Chinese interests but also disrupt global trade.

Trump’s Stance on Escalating Tariffs

U.S. President Donald Trump, in a statement made on February 3, reiterated his firm stance on the trade dispute, warning that tariffs on Chinese imports could rise further if no resolution is reached. “We’ll likely have talks within 24 hours,” Trump stated, adding that “if we don’t make a deal, tariffs will go higher.” While Trump unexpectedly delayed a 25% tariff on imports from Canada and Mexico, his administration went ahead with the additional tariffs on Chinese goods as planned.

Implications of the Intensified Trade War

The latest measures by both countries underscore the deepening trade conflict, with far-reaching implications for global supply chains and economic growth. China’s targeting of energy products and critical raw materials highlights its strategic approach to countering U.S. tariffs, while its regulatory actions against American firms signal a broader pushback against perceived economic aggression.

For businesses and policymakers, these developments serve as a stark reminder of the ongoing volatility in U.S.-China trade relations. With both sides showing no signs of backing down, the global economy faces increased uncertainty.