China Hits US with Retaliatory Tariffs on Energy Commodities
America ı By Rihem Akkouche
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China on Tuesday imposed new tariffs on U.S. coal, crude oil, and liquefied natural gas (LNG) in response to additional levies enacted by President Donald Trump on Chinese goods. The move marks the latest escalation in the ongoing U.S.-China trade war, with energy exports now squarely in the crosshairs.
Breakdown of China's Tariffs
The Chinese Ministry of Finance announced the following tariffs on American energy commodities:
- 15% tariff on U.S. coal and LNG
- 10% tariff on U.S. crude oil
The retaliatory tariffs will take effect on Feb. 10, coinciding with Trump’s additional 10% tariff on certain Chinese imports coming into force.
Trump Hints at Talks with Xi Jinping
Despite the intensifying trade battle, Trump suggested on Monday evening that he may speak with Chinese President Xi Jinping as early as Tuesday. The potential dialogue could indicate an attempt to ease tensions, though neither leader has signaled any immediate concessions.
Tariffs on Canada and Mexico Temporarily Paused
While trade relations between the U.S. and China remain strained, Trump has temporarily halted his proposed 25% tariffs on imports from Canada and Mexico for at least 30 days. The pause comes as the three nations engage in discussions on U.S. concerns over illegal immigration and the influx of fentanyl and other synthetic opioids into the country.
Impact on the Energy Sector
The new tariffs could deal a significant blow to U.S. energy exports, as China has been a major buyer of American LNG and crude oil. With Beijing now imposing higher costs on these imports, U.S. energy producers may need to seek alternative markets or absorb losses as the trade war continues.
With no immediate resolution in sight, the economic standoff between the world’s two largest economies appears far from over.
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