
Published 04/02/2025 09:10 | Edited 04/02/2025 10:24
The commercial war started by the United States entered a new phase of climbing on Tuesday (4), with Beijing announcing a series of retaliatory tariffs against US products. The measure occurs in response to President Donald Trump’s decision, which imposed 10% and 15% rates on Chinese imports, aggravating the scenario of economic tension between the two largest economies in the world.
China’s Ministry of Finance reported that from February 10, US energy and industrial products will be overcoat. Coal and Liquefied Natural Gas (LNG) will suffer 15%rates, while gross oil, agricultural equipment and some cars will be taxed by 10%.
Beijing argues that the US tariff offensive impairs global stability and violates the rules of the World Trade Organization (WTO).
The Chinese decision should also directly impact the energy sector in the world, as the US is the largest exporter of LNG and has expanded its oil exports to Asia. According to analysts, new rates should redirect Chinese demand to other suppliers such as Australia and Qatar, as well as increasing oil prices volatility in the global market.
The Chinese government has also announced stricter controls on strategic metal exports, including tungsten and other essential elements for the US technological and military industry.
China expands retaliation with antitrust investigation and sanctions against US companies
In addition to tariffs, China started an antitrust investigation against Google and placed US companies such as PVH Corp. (Calvin Klein, Tommy Hilfiger) and Illumina biotechnological on its list of “unrivable entities”. These measures expand Beijing’s response and signal a hardening of trade relations.
According to Beijing, the measure aims to restrict operations of companies that allegedly adopt unfair trade practices or pose risks to Chinese national security.
The actions expand the Chinese response and suggest that Beijing will use other mechanisms other than Tarump’s sanctions, directly impacting strategic sectors of the US economy.
China had already warned of impacts on fighting fentanil
Even before the officialization of new tariffs, Beijing had already reacted to Trump’s threat of taxation last Saturday (2). China’s Ministry of Public Security warned that a tariff offensive based on the fight against Fentanil “will not help to truly solve the problem” and “seriously damaging bilateral cooperation and confidence” in the struggle against drug trafficking.
The folder countered Trump’s allegations stating that the root of the Fentanil problem is in the US territory itself. “The opioid crisis in the United States is an internal problem caused by domestic demand and regulation of the pharmaceutical industry,” said the Chinese Chancellery.
Beijing has reinforced that the United States should focus on fighting domestic demand and traffic laundering linked to trafficking, instead of using rates as a pressure tool. The Chinese government also pointed out that it has hardened its control over chemicals used in the manufacture of opioids.
USA pauses tariffs against Mexico and Canada
While the trade war with China intensifies, the Trump administration has decided to temporarily suspend tariffs against Mexico and Canada. The US government had announced 25% rates on products imported from two neighboring countries, but after negotiations with the governments of Claudia Sheinbaum and Justin Trudeau, she agreed to postpone the measure for 30 days.
Washington’s decision was made after Mexico and Canada agreed to reinforce border control, especially in combating fentanyl trafficking and immigration. The agreement includes the sending of 10,000 members of the Mexican National Guard to the border and a Canadian investment of $ 1.3 billion in security. In return, the US paused the rates, but warned that the measure can be reversed if there is no progress in these commitments.
The temporary suspension of tariffs was celebrated by industrial sectors of Canada and Mexico, who feared severe impacts on the economy. Prime Minister Justin Trudeau stated that Canada will continue to “defend his market” and stressed that his government will continue to be aware of the White House movements. Mexican President Claudia Sheinbaum stressed that Mexico will not accept unilateral measures harmful to bilateral trade.
Washington’s decision to relieve pressure on his neighbors contrasts with the climb against China and reinforces the American strategy of trying to isolate Beijing.
Chinese manufacturing sector slows down, but maintains growth
The impact of the trade war is already reflected in the Chinese industry. The manufacturing purchasing managers (PMI) index fell to 50.1 in January, the lowest level in four months. The data indicates that, although Beijing still records economic growth, industrial activity has been slowing down in the face of global uncertainties.
Experts point out that the drop in production is related to the reduction of external demand and the weakening of exports. The commercial crisis with the US can deepen the country’s economic difficulties and press Beijing to adopt new stimuli to support growth.
Chinese companies consider transferring production to the US
Faced with tariff climbing, some Chinese companies already evaluate the relocation of their operations. Golf cart manufacturers, impacted by tariffs up to 478%, consider transferring production lines to the United States to avoid the additional costs imposed by Trump.
The change illustrates how the trade war has forced adaptations in global productive chains, leading companies to seek alternatives to mitigate the impacts of tariffs.
China will take tariff dispute to the WTO
In response to the new round of tariffs, the China Ministry of Commerce has announced that it will resort to the WTO against the US. Beijing accuses Washington of violating the rules of the organization and compromising global free trade.
Chinese authorities have stated that, in addition to legal contestation, they will adopt contracted to protect their economic interests. The WTO dispute adds a new chapter to the trade war and may have implications for the balance of trade between the two powers.
Perspectives: Trade War continues without signs of truce
China’s new retaliation package shows that Beijing does not intend to give in to the US tariff offensive. By combining fares, sanctions against companies and legal measures in the WTO, China reinforces its strategy of responding to Trump’s protectionist policies.
Meanwhile, the US government continues to expand its commercial pressure, signaling that new sanctions can be adopted if Beijing does not give in to Washington’s requirements. With a scenario of increasing uncertainty, global markets await the next developments of this economic clash that already impacts international trade and global financial stability.
Source: vermelho.org.br