China and United States flags
China and United States flagsiStock

Trump's tariffs on Chinese goods have prompted immediate retaliation from Beijing, raising concerns about global economic repercussions.

Under Trump's tariff plan, the US implemented 10% tariffs and eliminated an exemption for Chinese exports valued under $800, affecting retailers like Shein and Temu that rely on this exemption.

China has launched an anti-trust investigation into Google and announced tariffs on US goods including coal, liquefied natural gas, crude oil, farm equipment, large vehicles, and pickup trucks. China also announced export controls on critical minerals like tungsten, tellurium, ruthenium, molybdenum, and ruthenium-related items, citing national security concerns.

According to The Guardian, US companies PVH Group (owner of Tommy Hilfiger and Calvin Klein) and Illumina Inc, specializing in genomic sequencing, were added to China's "unreliable entity list," potentially facing restrictions or penalties. The reasons for their inclusion were not specified.

China's finance ministry condemned the US tariffs as a violation of World Trade Organization rules, arguing they harm bilateral economic cooperation.

After a call with Mexico's president, Claudia Sheinbaum, Trump postponed tariffs after she offered to send 10,000 troops to the US-Mexico border. Discussions with Canadian Prime Minister Justin Trudeau resulted in a similar postponement of tariffs. Canada is implementing a border security plan and will designate a "fentanyl czar."

As the US prepares even higher tariffs, the White House announced that Trump would speak with China's president, Xi Jinping, later this week. China has pledged countermeasures and a WTO legal challenge.

Economists have warned that Trump's tariffs could increase prices for US consumers. In response, Trump has stated tariffs are a "very powerful" means of strengthening the US economy and achieving desired outcomes. "In all cases, they all wanna make deals.” Trump acknowledged the tariffs might cause "a little pain" but maintained they were necessary to "make America great again.”