The world’s biggest two economies have exchanged trade war blows this morning – at 5am Donald Trump imposed tariffs on Chinese imports and within minutes China hit back with levies of its own. Follow the latest below – and listen to the latest episode of Trump 100 as you scroll.
Tuesday 4 February 2025 07:56, UK
China has one message to send the US this morning after imposing retaliatory tariffs – that they won’t take Trump’s trade war “lying down”, says Asia correspondent Nicole Johnston in Nansha Port, Guangzhou.
“Up until this point, they had been relatively restrained in the language that they had used towards the US, now they’re getting stronger,” she says.
“They’ve said that it is in bad nature, that it is trade protectionism and unilateralism.”
There are still a few days until the Chinese tariffs take effect on 10 February, before which there could be “an intervention, or a grand deal or a temporary reprieve”, adds Johnston.
If not, China’s commerce ministry said the country would impose export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items.
“This is something that China has done before,” Johnston says.
“It has a real grip on these critical minerals, which are essential for producing things like mobile phones and laptops, something that the entire world needs.”
China’s threat of a 15% levy on liquified natural gas “probably won’t have an immediate effect” because the product is normally sold on long-term contracts.
“What this is all about is really the message that China is trying to deliver to the US – and it is clear,” Johnston says.
“China is saying it is not going to take this 10% tariff that Donald Trump has imposed on China lying down.”
US correspondents Mark Stone and James Matthews discuss the trade rows after Donald Trump paused tariffs on goods from Mexico and Canada.
They also look at the announcement by Elon Musk that Trump will shut down USAID – the agency that supports international development – and ask what it means for countries that rely on American help.
You can email James, Martha and Mark at trump100@sky.uk
Alongside its tariffs on the US, China has launched an anti-monopoly investigation into Google.
The country’s state market regulator did not offer any further details on the probe or on what it alleged Google had done to breach the law.
Google products such as its search engine are blocked in China, but it works with local companies like advertisers.
China also added two US firms to its “unreliable entity list”: PVH Corp, the holding company for brands including Calvin Klein, and biotechnology firm Illumina.
Its commerce ministry said the two companies took what it called “discriminatory measures against Chinese enterprises” and “damaged” the legitimate rights and interests of Chinese companies.
The world’s top two economies have exchanged trade war blows this morning.
Donald Trump imposed an additional 10% tariff on all Chinese imports at 5am.
Within minutes, China retaliated with an announcement of 15% tariffs on US coal and liquified natural gas, and 10% on crude oil, farm equipment and some vehicles.
The new tariffs will start on 10 February, China’s commerce ministry said.
“The trade war is in the early stages so the likelihood of further tariffs is high,” Oxford Economics said in a note as it downgraded its China economic growth forecast.
China’s commerce ministry said the country would also impose export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items to “safeguard national security interests”.
Trump warned he might increase tariffs on China further unless Beijing stemmed the flow of fentanyl, a deadly opioid, into the US.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said yesterday.
China has called fentanyl America’s problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open for talks.
A White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week.
Welcome back to our live coverage as Donald Trump’s tariffs come into effect on China – after 11th-hour negotiations led to pauses to threatened tariffs on Mexico and China yesterday.
Before we bring you the latest, here’s a recap of key developments over the past 24 hours:
Thank you for following our live coverage today.
We’re pausing our updates in this blog overnight, but will be back with more tomorrow.
Before we go, here’s a recap of all the latest developments over the last 24 hours as the world reacted to Donald Trump’s tariffs.
Scroll through our posts to take a look at the latest insight from our team of correspondents throughout the day.
You can also watch analysis by our economics and data editor Ed Conway on tariffs below.
Donald Trump says he wants to secure access to Ukraine’s supply of rare earth minerals in exchange for financially supporting the country’s war efforts against Russia.
Speaking at the White House, Trump said he was looking to do a deal with Kyiv “where they’re going to secure what we’re giving them with their rare earths and other things”.
He told reporters that Ukraine’s government had signalled openness to the idea of exchanging its supplies of lithium, titanium and other rare earth minerals for continued American aid.
Trump also complained that Europe had not provided Ukraine the same level of aid as the US.
“We have an ocean in between. They don’t. It’s more important for them than it is for us,” he said.
By John Sparks, international correspondent
As the geographical spread of US President Donald Trump’s pronouncements increases, so do the furrowed worry lines of leaders worldwide.
Day 14 of the Trump presidency brought threats of a global trade war and news of the likely demise of USAID – the US international aid and development agency.
But the 78-year-old also spent his time complaining that “South Africa is confiscating land” and “certain classes of People” were being treated “VERY BADLY” in a post on his Truth Social website.
He threatened to cut off all future funding to the country until a full investigation is carried out – so, what is actually going on?
Part of Donald Trump’s trade war is rooted in the US president’s desire to get fentanyl off American streets.
The opioid is blamed for some 70,000 overdose deaths annually across the country, with criminal networks stretching back to China, Mexico and beyond blamed for pushing the drug into the US illegally.
Detecting the drug is extremely challenging for law enforcement due to its lack of odour and the small amounts it’s shipped in – fentanyl is 50 times more potent than heroin.
But Trump is hoping that by slapping trade tariffs on the countries fentanyl is coming from, it will help stop the flow.
He’s already seeing results.
After announcing 25% tariffs on Mexico, its president today announced she was sending 10,000 soldiers to the US border to battle drug-trafficking as part of a deal with Trump to pause tariffs for a month (see 15.35 post).
Canada has also received a 30-day pause after making similar promises, despite US customs seizing 99.98% more fentanyl from its border with Mexico than its border with Canada during the last fiscal year.
Read more about fentanyl and its impact on American streets from our US correspondent Mark Stone here…
By Mark Stone, US correspondent
First Mexico, now Canada. In another whirlwind day, both of America’s closest neighbours appear to have capitulated to President Trump.
The 25% tariffs on all goods from both countries were due to come into effect at midnight US Eastern time today. But after calls between all three leaders, suddenly the tariffs were paused.
So what’s going on? Is this a clear signal of the power Trump wields? His blunt tool of using the threat of tariffs as a negotiating tool has paid off? Bullying tactics work?
Well, maybe. At least that’s how Mr Trump wants everyone to think. Dance to my tune, or else.
And it’s absolutely the case that Mexico and Canada were in panic mode this weekend. But surely Donald Trump was panicking a little too when he saw the stock markets this morning. He claimed this afternoon not to be taking any notice of their sharp falls. But we know he cares deeply about market reactions.
Here’s what’s interesting: the statement from Canadian Prime Minister Justin Trudeau sounded at first glance like it was announcing something new.
“Canada is implementing our $1.3bn border plan… nearly 10,000 frontline personnel are and will be working on protecting the border…”
But it’s not a new announcement. Look at the language: “are and will be”. In other words: “We’re doing this already Mr President, but if you want me to reiterate it to placate you, then I will…”
All that Justin Trudeau has done today is reiterate a border plan he announced last December. You can read it here.
Mexico too has been doing an increasing amount in the fight against fentanyl (read about it here) though it could and probably now will do more.
So has it all been theatre this past 24 hours?
A show of brinkmanship from Donald Trump, which could have had a cliff-edge ending, but instead ended with him looking strong (and freaking out much of the developed world in the process) and his closest neighbours forced to reiterate their existing plans.
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