Trade War: China retaliated with tariffs against the US in response to Trump's actions.

This is reported by Reuters.

An additional 10% tariff on all Chinese goods imported into the United States came into effect on Tuesday. Trump has repeatedly stated that China is not doing enough to stop the flow of illegal drugs into the U.S.

In response, China's Ministry of Finance announced the imposition of a 15% tariff on American coal and liquefied natural gas (LNG), as well as a 10% tariff on oil, agricultural equipment, and certain vehicles.

Furthermore, China has initiated an antitrust investigation against Alphabet Inc. (Google) and added PVH Corp (the owner of brands including Calvin Klein) and American biotech company Illumina to its list of "unreliable companies."

Separately, the Ministry of Commerce and Customs Administration of China announced the introduction of export controls on certain rare earth elements and metals that are crucial for the production of high-tech devices and the development of clean energy.

The new Chinese tariffs on American exports will take effect on February 10, providing Washington and Beijing with time for potential negotiations. The White House reported that Trump plans to speak with Chinese President Xi Jinping later this week.

On Monday, Trump postponed the introduction of 25% tariffs on goods from Mexico and Canada, agreeing to a 30-day pause in exchange for concessions on border control and crime fighting.

Reminder:

U.S. President Donald Trump signed three decrees imposing additional tariffs on goods from Canada, Mexico, and China. This marked the first official decision in the trade war. Leaders from Canada and Mexico have promised to respond with similar measures.