China Escalates Trade War with New Tariffs and Export Controls Against the U.S.

Trade tensions between the U.S. and China have escalated again, with Beijing responding to Washington’s latest tariff hikes by introducing its own set of economic measures.

Starting February 10, China will impose tariffs of up to 15% on select U.S. goods, targeting coal, liquefied natural gas, crude oil, agricultural equipment, and vehicles. Additionally, new export controls have been placed on critical minerals like tungsten and tellurium, both vital for industrial and defense applications.

Beijing has also moved to penalize American companies, adding biotech firm Illumina and fashion retailer PVH Group to its “unreliable entities” list for allegedly violating market principles. Simultaneously, Chinese regulators have launched an antitrust probe into Google, though the company has minimal operations in the country. These measures come in response to Washington’s broad 10% tariff on Chinese imports, part of a wider strategy that also targeted Mexico and Canada, initially tied to efforts to curb illegal immigration and fentanyl trafficking.

While China’s countermeasures are significant, they remain measured compared to the sweeping tariffs imposed by the U.S., which affect hundreds of billions of dollars in trade. Beijing has also filed a complaint with the World Trade Organization, arguing that Washington’s actions undermine global economic stability. Despite the tensions, both sides have left room for negotiation, with President Trump suggesting he may speak with Chinese leader Xi Jinping soon.

The dispute reflects broader economic and geopolitical friction, including trade imbalances, technology competition, and security concerns. Although China has diversified its economy since previous trade wars, its export-driven growth faces new challenges. The coming months will determine whether this standoff leads to further escalation or a shift toward renewed dialogue.