Trade War looms as China hits back at Trump tariffs with probe into Google

In addition to China’s retaliation to U.S.’s tariffs, the country has also launched an investigation into Google, suspecting it violate anti-monopoly.
China’s Xi and US’s Trump

China did not immediately respond to Trump’s tariffs on the country’s importation in the United States hours the tax policy law was signed. On Sunday, China’s Ministry of Commerce stated it would take “corresponding countermeasures to firmly safeguard its rights and interests”. The ministry also said it would challenge the tariffs at the World Trade Organization.

However, that seems not to be the case now. Immediately Trump’s tariffs took effect in China at 12:01 (ET 0501 GMT) Tuesday morning, China's Finance Ministry retaliates with a 15% tariffs for U.S.'s coal and liquefied natural gas and a 10% tariffs for U.S.'s crude oil, farm equipment and some autos. According to the announcement by the Ministry, the new tariffs will be effective on February 10, 2025.

This is a beginning of a new trade war between the world's top two economies as President Donald Trump sought to punish China for not preventing the illegal importations of illicit drugs into the U.S. Recall that Canada and Mexico have immediately retaliated hours after Trump imposed the new tariffs on them. Although, Trump threatened to escalate tariffs for any of the countries that retaliate but seems these countries are not threatened by Trump’s words.

In response to the U.S.'s tariffs, Canadian Prime Minister Justin Trudeau announced retaliatory tariffs of 25% on a range of U.S. products, starting with C$30 billion worth on 4th February, increasing to C$155 billion in three weeks. The prime minister also urged Canadians to reduce their purchases of American goods and reconsider travel plans to the U.S.

Yesterday, Donald Trump and Claudia Sheinbaum announced that Trump administration is pausing tariffs against Mexico for one month. The Mexicon President Claudia Sheinbaum, however, said both sides held "productive talks" and agreed on plans to improve border safety and stop illegal weapons and drugs from being moved across borders.

Furthermore, as part of China initiative on curbing the effectiveness of the Trump’s tariffs, it Commerce Ministry and Customs Administration have announced export controls on tungsten, tellurium, ruthenium, molybdenum, and related items to protect national security interests.

Google should also brace for impact

China’s anti-monopoly regulator also announced on Tuesday that it had launched an investigation into Google through China’s State Administration of Market Regulation, minutes after an additional 10% tariff on Chinese goods imposed by US President Donald Trump came into effect.

The Chinese regulator said Google was suspected of violating the country’s anti-monopoly law, and it had initiated an investigation into the company in accordance with the law.

Although, the Chinese anti-monopoly regulators did not explicitly state what the Alphabet’s company has done wrong or any further details about the investigation. But what we do know is that some Google products such as its search engine are blocked in the country long time ago.

What you should know

In 2018, during his first term, Trump started a tough trade war with China because China was selling much more to the US than it was buying. Both countries put high taxes (tariffs) on each other’s goods, which hurt global trade and the world economy. In 2020, to end the trade war, China promised to buy an extra $200 billion worth of US goods each year. However, the Covid pandemic disrupted this plan, and China’s trade gap with the US grew to $361 billion, according to recent data.

Secondly, the Trump’s 25% tariffs on Canada and Mexico have been paused for 30-days. This was done in productive negotiations between the countries. Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to enhance border enforcement efforts in response to Trump's demand to crack down on illegal immigrations, weapons smuggling and drugs smuggling.

United States, Canada and Mexico have agreed on these terms:

  • Canada will deploy new technology and personnels at its U.S. border to help fight organized crime, drug smuggling, and money laundering.
  • Mexico will send 10,000 National Guard troops to its northern border to reduce illegal migration and drug trafficking.
  • The US has promised to help stop the smuggling of powerful weapons into Mexico.

What do you think about the trade war Trump has initiated? Let’s hear your opinions in the comments section.

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About the author

Temmy Samuel
Temmy Samuel is a seasoned journalist with extensive experience in consumer tech, economy, finance, business, money and politics. Currently, he’s studying Accounting at the Federal University of Oye-Ekiti.

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