US-China trade tensions escalate as Beijing responds to tariffs
Shreeaa Rathi | TIMESOFINDIA.COM | Feb 04, 2025, 23:50 IST
( Image credit : TIL Creatives )
US-China trade tensions rise as Beijing imposes tariffs on American exports following Trump's latest round of tariffs on Chinese goods. Key items targeted include coal, crude oil, and large vehicles. China also restricts exports of certain metals and blacklists US firms while filing a WTO complaint against the US, despite leaving room for further negotiations.
China’s Countermeasures
Additionally, China’s Ministry of Commerce and customs administration announced stringent export controls on over two dozen metal products and related technologies, including tungsten, a critical mineral used in industrial and defense applications, and tellurium, a key component in solar cell manufacturing.
Further intensifying the economic standoff, China has added two US firms—biotech giant Illumina and PVH Group, the parent company of fashion brands Calvin Klein and Tommy Hilfiger—to its unreliable entities list. According to Beijing, PVH engaged in discriminatory practices against Chinese businesses, though specifics were not provided. PVH has denied these allegations, stating it has always adhered to market regulations in its two decades of operation in China.
A Muted but Calculated Response
“The measures are fairly modest relative to the US moves and have been carefully calibrated to send a message without causing excessive economic disruption,” Evans-Pritchard noted.
Legal Action at the WTO
A New Trade War?
There is speculation that the latest tariffs could be the opening salvo in a fresh round of economic hostilities. However, Beijing has signaled its desire to avoid an all-out trade war, as it did during Trump’s first term when both sides imposed heavy duties on each other’s goods.
Room for Negotiation
The latest dispute underscores the fragile state of US-China economic relations. While Beijing’s response appears measured, the potential for escalation remains high. The coming weeks will determine whether the two superpowers can find common ground or if a full-scale trade war is inevitable.