China launches investigation into Google amid retaliation for Trump’s tariffs

Beijing has fired back against the Trump administration’s latest round of tariffs, launching an antitrust investigation into Google and imposing new levies on US products in a fresh escalation of the ongoing trade war between the world’s two largest economies.

China’s State Administration for Market Regulation announced the probe into the US tech giant on Tuesday, just hours after President Donald Trump imposed a 10% tariff on a range of Chinese imports. The Chinese government has framed the investigation as a move to ensure fair market competition but did not explicitly link it to the tariffs.

Sweeping Countermeasures

Alongside the Google investigation, Beijing has introduced a series of retaliatory measures, including:

• 15% tariff on US coal and liquefied natural gas (LNG).
• 10% tariff on US crude oil, agricultural equipment, and large-displacement vehicles.
• Export controls on critical minerals, including tungsten, indium, molybdenum, tellurium, and ruthenium.
• The addition of US firms PVH Group (owner of Tommy Hilfiger and Calvin Klein) and Illumina Inc. (a biotech company specializing in genomic sequencing) to China’s "unreliable entity list," subjecting them to restrictions or penalties.

China’s finance ministry sharply criticised the US tariffs, stating that they "severely violate World Trade Organization (WTO) rules" and "disrupt normal economic and trade cooperation between China and the United States." Trump has also hinted that he may impose even steeper tariffs on China if Beijing does not comply with US demands.

Despite the rising tensions, both sides are keeping diplomatic channels open. Trump is expected to hold a call with Chinese President Xi Jinping in the coming days, with Beijing hoping to discuss potential avenues for de-escalation.

Over the weekend, he postponed a planned 25% tariff on Mexico and Canada following last-minute negotiations that secured commitments for increased border security measures. 

However, China has reacted strongly, warning that the tariffs will undermine future cooperation and pledging to challenge them through the WTO. Chinese officials have also accused Washington of economic coercion and vowed to take "all necessary countermeasures" if the dispute escalates further.

Meanwhile, economists have raised concerns about the impact of Trump’s tariffs on American consumers. By scrapping an exemption that previously allowed Chinese shipments under $800 to enter the US tariff-free, major Chinese retailers such as Shein and Temu could face higher costs, potentially leading to price increases for US shoppers.