China Hits Back with Tariffs and Google Probe After US Trade Levies

Tensions are escalating rapidly between the United States and China as a full-blown trade war brews, with both nations imposing retaliatory measures on one another. Donald Trump’s announcement of new tariffs on Chinese imports has sparked swift retribution from Beijing, igniting fears for global economic stability.
China has not only introduced a range of tariffs on American goods but has also launched an antitrust investigation into one of the most significant tech companies in the world—Google. The global economy is watching closely as these heavyweights engage in an economic showdown, with serious implications for international markets.
New US Tariffs Trigger Retaliation
The United States recently imposed a 10% tariff on a wide range of Chinese imports. These measures, described by the US government as an effort to strengthen its own economy, are deeply controversial. Economists fear they will lead to higher costs for US consumers while weakening international trade relationships.
China responded quickly, implementing tariffs of their own. Among the most significant measures taken by Beijing, the Ministry of Finance has announced tariffs of 15% on American coal and liquefied natural gas (LNG), and 10% on crude oil. Additionally, sectors dealing in large-displacement vehicles, farm equipment, and pickup trucks will also be hit by these levies.
The escalation does not stop there. Beijing introduced export restrictions on critical minerals such as tungsten, molybdenum, and ruthenium, resources essential to several global industries including electronics and manufacturing.
“Unilateral tariffs imposed by the US seriously violate the rules of the World Trade Organization,” China’s finance ministry commented, accusing the US of damaging ongoing economic cooperation.
China’s Strategic Antitrust Probes
Adding fuel to the trade war’s fire, China launched an antitrust investigation into Google. Though many of Google’s core services, like Search and Gmail, are blocked in China, the tech giant still generates significant revenue in the country through advertising and its Android operating system used by Chinese smartphone manufacturers.
China’s antitrust spotlight is not limited to Google. More firms are falling under scrutiny. US companies such as PVH Group—owners of Tommy Hilfiger and Calvin Klein—and Illumina Inc., a leader in genomic sequencing, have been added to China’s “unreliable entity list”. This designation could expose these companies to restrictions and penalties.
Recent months have also seen Beijing eyeing US tech firms Nvidia and Intel, tightening regulations at a time when their products are highly sought after in China. For Nvidia and Intel, which operate in multi-billion-dollar industries, the implications of China’s regulatory attention could be profound.
US Tightens Measures Against Chinese Imports
Meanwhile across the Pacific, the US government has scrapped an existing exemption for shipping of goods valued under $800. This change directly impacts Chinese e-commerce titans like Shein and Temu, which capitalise on cheaper regulations to penetrate the US market.
President Trump’s federal trade rhetoric reaffirmed his bullish stance on the situation, claiming on social media that while Americans may face some short-term hardships, the long-term benefits would be worth it.
Mexico and Canada Avoid Larger Tariffs – For Now
Although China is bearing the brunt of US tariffs, the Trump administration pulled back on imposing similar steep levies on Mexico and Canada. After key discussions with Canada’s Prime Minister Justin Trudeau and Mexico’s President Claudia Sheinbaum, immediate economic conflict was seemingly avoided.
Actions such as Mexico’s deployment of 10,000 troops to its US border and Canada’s $1.3bn border security upgrades were viewed as sufficiently cooperative measures to delay tariff increases. Nonetheless, Trump assured his supporters that all options remain on the table, depending on ongoing progress.
Global Markets React to Trade Fight
The volatile trade environment is not limited to political conference rooms. Global financial markets have featured sharp movements as speculation over possible outcomes continues.
The Hang Seng Index in Hong Kong surged by 2.8%, reflective of regional optimism, while South Korea’s Kospi climbed 1.3%. However, the FTSE 100 in London experienced a drop of 31 points, and both the euro and British pound weakened against the US dollar.
The Canadian dollar also failed to gain significant ground after reaching a 20-year low earlier this week. Meanwhile, China’s markets remain closed for Lunar New Year celebrations.
Uncertain Path Ahead for Global Trade
At its core, this conflict is more than just a disagreement between two of the world’s biggest economies—it highlights a deeper struggle for power in global trade. With neither side showing signs of backing down, trade experts warn of long-lasting disruptions to international supply chains and investor confidence.
While talks are planned between President Trump and Chinese leader Xi Jinping, hopes for easing tensions are slim but still possible.
Source
Explore more entrepreneurial insights and success stories at Inspirepreneur, your go-to magazine for business innovation and leadership.