Tuesday, hitting back after US President Donald Trump imposed 10% tariffs on Chinese imports.

The fresh duties, announced by China’s Ministry of Finance, levy a 15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks. The measures take effect on February 10.

The Ministry of Commerce and China’s customs administration also announced new export controls effective immediately on more than two dozen metal products and related technologies. Those include tungsten, a critical mineral typically used in industrial and defense applications, as well as tellurium, which can be used to make solar cells.

The ministry also said it was adding two American firms — biotech company Illumina and fashion retailer PVH Group, owner of Calvin Klein and Tommy Hilfiger — to its unreliable entities list, saying they “violated normal market trading principles.”

A Ministry of Commerce spokesperson said Tuesday that it found PVH discriminated against and interfered with the operations of Chinese companies, though the spokesperson failed to provide specifics.

PVH criticized the decision and said it would work with Chinese authorities to resolve the situation.

“We are surprised and deeply disappointed to learn of the decision from the Chinese Ministry of Commerce,” a spokesperson for PVH said in a statement. “In our 20 years of operating in China and proudly serving our consumers, as a matter of policy, PVH maintains strict compliance with all relevant laws and regulations and operates in line with established industry standards and practices.”

In a separate statement, China’s State Administration for Market Regulation said it was initiating an investigation into Google for suspected violation of its anti-monopoly. The company, whose search engine is not available in China, has minimal operations in the country.

The raft of announcements come as a broad-based 10% tariff on Chinese imports to the United States announced by the White House on Saturday came into effect.

China’s measures appear to vary in their potential impact on the US economy and businesses. For example, China is the leading global producer of tungsten concentrates, representing more than 80% of world production, according to US government estimates from 2020. The tariffed items, however, represent a relatively small proportion of overall bilateral trade.

“The measures are fairly modest, at least relative to US moves, and have clearly been calibrated to try to send a message to the US (and domestic audiences) without inflicting too much damage,” Julian Evans-Pritchard, head of China Economics at financial insight firm Capital Economics, said in a research note Tuesday.

The Chinese tariffs target at most $20 billion of the country’s annual imports from the US, about 12% of the total, which is “a far cry” from the more than $450 billion in Chinese goods being targeted by the US, he added.

Beijing had slammed those tariffs in a statement Sunday and vowed to “resolutely defend its rights” by filing a complaint with the World Trade Organization (WTO) and taking “corresponding countermeasures.”

In a statement Tuesday, China’s commerce ministry confirmed that it had brought the Trump administration’s tariff measures to the WTO dispute settlement mechanism.

“The US practice seriously undermines the rules-based multilateral trading system, undermines the foundation of economic and trade cooperation between China and the United States, and disrupts the stability of the global industrial chain and supply chain,” the ministry said.

A new trade war?
The Chinese measures, announced on the final day of China’s week-long new year holiday, mark what could be the opening salvo of a new tit-for-tat trade war between Washington and Beijing. However, they don’t rule out the possibility of further dialogue or deal-making between the two sides.

The White House had announced the 10% tariffs on Chinese imports on Saturday as part of broader trade measures also targeting Mexico and Canada – part of what the Trump administration said was a bid to hold those countries accountable for illegal immigration and the flow of fentanyl and other drugs into the US.

Trump agreed to “immediately pause” tariffs on Mexico and Canada after holding separate calls with those countries’ leaders Monday — the day before the duties on goods from all three countries were meant to come into effect. Both leaders had agreed to strengthen security along their borders.

Trump said Monday that he expected he could speak with Chinese leader Xi Jinping in the next 24 hours. Beijing has yet to confirm any call. A White House spokesperson said later Monday the call could happen “in the next couple of days.”
