Beijing retaliates with duties on US imports, Google probe

Singapore: China has launched an investigation into Google and will slap tariffs of 10 to 15 per cent on certain US imports including coal and natural gas within days, as it retaliated in an escalating trade war with the Trump administration.

Beijing’s rapid response was announced within minutes of a new 10 per cent US tariff on all Chinese imports kicking in on Tuesday in a move US President Donald Trump said was to punish China for its role in the fentanyl crisis.

China’s retaliatory tariffs will begin on February 10, signalling the potential for a deal to be struck between Trump and Chinese leader Xi Jinping in the coming days.

Speaking to reporters in Washington on Monday before China’s response, Trump said he would seek talks with Xi “probably over the next 24 hours”.

“If we can’t make a deal with China, then the tariffs will be very, very substantial,” Trump said.

Trump confirmed on the weekend he was proceeding with tariffs of 10 per cent on Chinese goods and 25 per cent on Canadian and Mexican products. But in a last-minute reprieve, he suspended the threats against Canada and Mexico in exchange for concessions on greater law enforcement controls on the fentanyl trade.

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As it denounced Trump’s tariff threats over the weekend, the Chinese government called for dialogue between the two sides but has yet to respond to Trump’s suggested talks.

In a statement on Tuesday, China’s Finance Ministry said it would levy duties of 15 per cent on coal and LNG, and 10 per cent on crude oil, farm equipment and some vehicles from the US.