China wasted no time in retaliating after President Donald Trump imposed a fresh 10% tariff on goods from Beijing, reigniting tensions between the world’s two largest economies. Within hours, China announced an antitrust investigation into Google and slapped new levies on a range of US exports.
The State Administration for Market Regulation confirmed on Tuesday that Google is under scrutiny for alleged antitrust violations. Simultaneously, China’s Finance Ministry introduced tariffs of 15% on US coal and liquefied natural gas and 10% on oil and agricultural equipment.
“The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization,” the ministry stated. “It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US.”
The swift retaliation contrasts with the situation in Mexico and Canada, which secured temporary exemptions from the US’s 25% tariffs after reaching agreements with Trump.
In addition to tariffs, Beijing expanded its economic countermeasures. It placed PVH Corp., the parent company of Calvin Klein, and biotech firm Illumina Inc. on its unreliable entity list. It also tightened export controls on tungsten-related materials.
The financial impact was immediate. The offshore yuan weakened by 0.3%, while the Australian and New Zealand dollars—both closely tied to Chinese trade—dropped nearly 1%. Other Asian currencies, including the Thai baht and Indonesian rupiah, also saw fluctuations.
Though Google’s search services have been blocked in China since 2010, the company maintains operations focused on advertising. The antitrust investigation signals a deeper crackdown on US tech firms amid trade tensions.
Trump had ordered the tariffs to take effect just after midnight on Tuesday, citing Beijing’s alleged failure to curb the flow of illicit drugs into the US. His executive order included provisions for further tariff hikes if China retaliated—setting the stage for further escalation in the trade war.