China Hits Back: Tariffs on U.S. Goods and Antitrust Probe Into Google

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Key Takeaways

China announced 15% tariffs on U.S. coal/LNG and 10% tariffs on oil, machinery, and large vehicles from February 10, 2025.
China initiated an antitrust investigation into Google on February 4, 2025, citing monopolistic behavior under its Anti-Monopoly Law.
Key U.S. companies, including PVH Corp. and Illumina, were added to China’s restricted entities list alongside tighter tungsten material export controls.

China’s recent decision to counter U.S. tariffs with targeted measures, including a probe against Google, marks a sharp escalation in trade tensions between the two global superpowers. On February 4, 2025, the day President Trump’s 10% tariffs on Chinese imports went into effect, China announced retaliatory tariffs on U.S. goods and an antitrust investigation into Google. These moves have significant implications for trade, tech companies, and economic relations globally.

China’s New Tariffs on U.S. Goods

China Hits Back: Tariffs on U.S. Goods and Antitrust Probe Into Google

China’s Ministry of Commerce unveiled a tariff policy that specifically targets key U.S. goods. Starting February 10, 2025, these tariffs will impose:

A 15% tariff on U.S. coal and liquefied natural gas (LNG)
A 10% tariff on crude oil, agricultural machinery, and large-displacement cars

The industries affected by these tariffs are a significant part of U.S. exports, which suggests China is intending to strike high-value sectors closely tied to the overall U.S. economy. Coal and LNG, for instance, are major components of U.S. energy exports. Crude oil, agricultural machinery, and large vehicles are similarly symbolic commodities with both economic and political importance.

In their statement, China’s Ministry of Commerce criticized the U.S. tariffs as being in direct violation of World Trade Organization (WTO) rules. They emphasized that such measures harm not just China but the global trade order and normal business interactions between the two nations. This framing shows that China is not only retaliating but is also positioning itself as a country that adheres to global trade norms.

Other Retaliatory Steps by China

China has gone beyond just imposing tariffs. The country appears to be leveraging regulatory actions to signal its displeasure with U.S. policies. Two noteworthy measures include:

Restricted Entities List: U.S.-based companies such as PVH Corp., the owner of Calvin Klein, and Illumina, a gene sequencing firm, have been added to China’s restricted entities list.
Export Controls: In addition to the list, China announced tighter export controls on tungsten-related materials, which are crucial in many industries, including electronics and weaponry.

These measures indicate a broader strategy beyond tariffs to assert economic pressure. By targeting specific U.S. companies and materials, China is diversifying its response tools in the trade confrontation with the U.S.

Google’s Antitrust Investigation

Another major development is the launch of an antitrust investigation into Google by China’s State Administration for Market Regulation (SAMR). This investigation was also announced on February 4, 2025, aligning it with the timing of tariffs.

The investigation will focus on Google’s alleged monopolistic behavior under the framework of China’s Anti-Monopoly Law. While Google’s core platforms, such as its search engine and YouTube, have been banned in China since 2010, the company has maintained an operation in the country largely centered on supporting Chinese businesses with international advertising. The investigation may focus on this limited footprint, which serves Chinese entities seeking to reach global audiences.

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China Retaliates Tariffs

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China will impose 15% tariffs on U.S. coal/LNG and 10% on machinery, oil, and vehicles starting February 10, 2025. An antitrust investigation into Google was launched on February 4, 2025, amidst rising trade tensions.

Although the scope of the case remains unclear, it comes as Google faces antitrust scrutiny globally. The company has been under similar investigations in countries like the United States and the United Kingdom, as noted by VisaVerge.com. The new probe will further complicate Google’s situation amid mounting regulatory challenges worldwide.

But what may emerge as China’s endgame in launching this probe? According to provisions in antitrust laws, such investigations can result in hefty fines or operational restrictions for companies deemed to have violated rules. However, experts, including those cited by CNBC, speculate that the investigation could end without penalties. Despite this, the move indicates China’s willingness to use regulatory tools strategically in its international disputes.

U.S. Tariffs on China and the Broader Context

To fully understand these tensions, it’s crucial to look at the actions that led to China’s retaliation. On February 4, 2025, President Trump imposed a 10% tariff on Chinese imports and a 25% tariff on goods from Canada 🇨🇦 and Mexico 🇲🇽. The justification? Trump cited failures by these nations to stop illegal drugs like fentanyl from reaching the U.S. While the reasoning drew controversy, the action clearly signaled a breakout from normal trade disagreements into areas with geopolitical overtones. The China 🇨🇳-specific tariffs represent an additional level of discord following years of strained relations.

Impacts of Escalating Trade Tensions

The escalating tit-for-tat measures between China and the U.S. will have broad impacts, affecting multiple groups. For businesses, both in energy sectors like coal and LNG and in smaller industries like large vehicles, the tariffs will result in immediate cost increases. U.S. exporters may struggle to maintain competitiveness in the Chinese market. For regular consumers, these increases often translate into higher prices.

The political implications are equally considerable. The increasing trade restrictions suggest a return to the “trade war” atmosphere from years past, an environment where neither country hesitated to take bold mutual counter-measures. Whether this escalation will force negotiations or lead to a prolonged trade deadlock remains unknown.

How Global Markets and Google May Get Affected

The antitrust investigation against Google, while technically a separate matter from the tariff battle, adds another layer to the economic tensions. If Chinese authorities choose to penalize Google in some form, even as the company’s activity in China is relatively small, it could set a precedent for other nations to scrutinize or restrict the company’s global activities more aggressively.

Meanwhile, U.S.-based companies added to China’s restricted entities list, such as PVH Corp. and Illumina, must now face potential challenges in maintaining their business ties in China 🇨🇳. The rules around the entities list can vary, but they often lead to profit losses or more costly compliance measures.

What This Means for the U.S.-China Ties

These developments point to a significant worsening in already fragile U.S.-China relations. The timing of the Google antitrust announcement, coinciding with tariffs being imposed, underscores how interwoven trade, business, and geopolitics have become between the two giants. China, viewing the tariffs as an attack on fair-commerce principles, has responded with economic and legal countermeasures to exert pressure.

Additionally, by targeting sectors like energy and agriculture—ones that are symbolic fixtures of the U.S. economy—China is looking to shape the narrative and economic realities of its ongoing dispute with the U.S.

Broader Implications for Trade

A ripple effect from the U.S.-China dispute could resonate across international trade systems. For instance, companies worldwide reliant on tungsten-related materials (now under stricter Chinese controls) may face disruptions. In addition, smaller nations or economies with heavy indirect ties to either China or the United States may also have to adjust as markets shift focus amidst heightened trade barriers.

Conclusion

February 4, 2025, will likely be seen as a turning point in this high-stakes economic standoff. China’s countermeasures—a multi-faceted mix of tariffs, regulatory restrictions, and an antitrust probe against Google—underscore the intensification of these disputes. As the 15% and 10% tariffs come into effect on February 10, 2025, various industry players will need to adapt quickly.

The broader implications of these measures, whether on energy trade, restricted entities lists, or companies like Google, show how interconnected and volatile the global economy has become. As trade tensions between these two juggernauts continue to evolve, the rest of the world is left watching, waiting, and preparing for the consequences. For now, policymakers, businesses, and individuals must remain cautious, as the stakes only seem to grow higher in this U.S.-China faceoff.

For more information on international trade policies, the World Trade Organization’s official website is an excellent resource.

Learn Today

Retaliatory Tariffs → Taxes imposed by a country on imports in response to similar actions from another country.
Anti-Monopoly Law → Legal framework designed to prevent monopolistic practices and promote fair competition among businesses within a market.
Restricted Entities List → A register of companies or organizations that face limitations on their business operations in a specific country.
Export Controls → Governmental restrictions on the export of certain goods, technologies, or materials for economic or national security purposes.
Trade War → Prolonged economic conflict between countries involving tariffs, restrictions, and countermeasures affecting imports and exports.

This Article in a Nutshell

China’s Retaliation: A Bold Trade Standoff
China’s tariffs on U.S. goods and its Google antitrust probe signal a sharp turn in U.S.-China trade tensions. Targeting energy and key exports, while leveraging regulatory tools, China strikes back against U.S. measures. This growing economic showdown highlights global trade vulnerabilities, demanding attention from policymakers, businesses, and consumers worldwide.
— By VisaVerge.com