On February 1, 2025, the United States announced a 10% tariff on goods imported from China, which officially took effect on February 4. Additionally, the U.S. planned to impose tariffs on imports from Canada and Mexico but later suspended those plans, making China the sole target of this round of the tariff war.

Reasons for the U.S. Tariff Increase

The United States claims that this tariff increase is based on the so-called 'fentanyl issue' and other alleged 'national emergencies,' and is implemented under the International Emergency Economic Powers Act (IEEPA).

Countermeasures Taken by China

On February 4, 2025, the Tariff Commission of the State Council of China announced the decision to impose tariffs on certain imported goods originating from the United States starting February 10, 2025. Specific measures include:

• A 15% tariff on coal and liquefied natural gas.

• A 10% tariff on crude oil, agricultural machinery, large displacement vehicles, and pickups.

International Community's Reaction

This protectionist measure by the U.S. has faced widespread opposition both internationally and domestically. The Chinese Ministry of Foreign Affairs and the Ministry of Commerce have stated that there are no winners in a trade war or tariff war, and China will firmly protect its own interests.

Impact and Outlook

This tariff increase will have a profound impact on U.S.-China trade relations and may also affect global supply chains. Related companies need to reassess their supply chains and adjust their procurement, distribution, or production arrangements.