China will add new taxes on US goods. This raises trade tensions between the two biggest economies. The US added a 10% tax on Chinese imports. Now, China will tax US coal and liquefied natural gas (LNG) by 15%. These new taxes will start next Monday.
China’s Response to US Taxes
China’s government also said it will add a 10% tax on US crude oil, farm equipment, big cars, and pickup trucks. China says these taxes answer the US move, which it calls unfair.
China announced these taxes right after ex-US President Donald Trump said he will talk with China’s leader, Xi Jinping, in the next day. This timing shows China is open to talks.
A Careful Move, Not an Attack
Julien Chaisse, a trade expert, says China’s move is not extreme.
“These taxes show China wants to push back but still talk,” he said.
China set the start date as February 10. This gives time for talks. If both sides talk, they might make changes or deals to stop more problems.
Trump’s Trade Plan and Its Effects
Last weekend, Trump said the US will tax many trade partners. This includes Canada, Mexico, and China. His reason? He says these countries do not stop illegal drugs and people from coming into the US.
But, on Monday, he paused new taxes on Mexico and Canada for 30 days. This happened after they agreed to help more with border security.
Trade War Worries
These taxes remind people of the 2018-2020 US-China trade war. Both sides kept raising taxes on goods. This hurt global trade and slowed growth.
In 2020, China promised to buy $200 billion more in US goods to fix the problem. But COVID-19 stopped this plan. Now, China’s trade surplus with the US is $361 billion.
Trump warned he may add more taxes if China does not stop fentanyl from reaching the US. China says fentanyl is the US’s problem. It plans to fight the new taxes at the World Trade Organization. But, China is still open to talks.
What Happens Next?
China’s new taxes show it is serious. But it also leaves room for talks. The next few days will decide if trade tensions calm down or get worse. Businesses and investors are watching closely.
