The new customs duties imposed by the United States on China have come into effect, although Donald Trump has suspended those targeting Mexico and Canada. Thus, an additional 10% tax will be paid for products imported from China.
The decision escalates trade tensions between the world’s two largest economies, as reported by BBC.
Donald Trump stated that the measure was imposed because China failed to stop the flow of fentanyl to the United States.
"We hope that China will stop sending us fentanyl, and if not, tariffs will increase substantially," said Donald Trump, according to Sky News.
On the other hand, customs duties targeting Canada and Mexico were suspended at the last minute, as both countries agreed to enhance border security with the U.S. Canada announced that it would send nearly 10,000 people to the front line to protect the border. Additionally, a joint Canada-U.S. task force will be formed to "combat organized crime, fentanyl trafficking, and money laundering," announced Canadian Prime Minister Justin Trudeau.
In response, China's Ministry of Finance announced on Tuesday a package of taxes on a range of American products, reports the BBC.
Beijing's countermeasures include a 15% tax on imports of coal and liquefied natural gas from the U.S.
Additionally, imports from the U.S. of vehicles with large engines, trucks, coal, liquefied natural gas, oil, and agricultural machinery will be taxed at 10%.
Furthermore, China's competition watchdog announced that it has launched an investigation into Google, the American company being suspected of violating antimonopoly laws.