China has responded to Trump’s 10% blanket tariff with targeted measures affecting $20 billion in US imports, including 15% levies on coal and LNG and 10% on crude oil and select vehicles.
The government has also opened an antitrust investigation into Google and identified companies like PVH and Illumina for potential sanctions. The timing of China’s tariffs, set to take effect February 10th, leaves room for negotiations as both sides attempt to avoid a full-scale trade war.
Meanwhile, Trump has temporarily suspended threatened 25% tariffs on Mexico and Canada, agreeing to a 30-day negotiation period, and has suggested the EU could be his next target. Markets have responded with crude prices falling and various currencies weakening against the dollar, reflecting concerns about prolonged global trade tensions.