China hits back at Trump with tariffs on US goods, Google probe
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China hits back at Trump with tariffs on US goods, Google probe

Google's search engine is blocked in China, but it collaborates with local partners

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United States President Donald Trump delivers his speech next to US and Chinese flags as he and Chinese President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, on Nov 9, 2017. (File photo: Reuters)
United States President Donald Trump delivers his speech next to US and Chinese flags as he and Chinese President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, on Nov 9, 2017. (File photo: Reuters)

SINGAPORE — China announced an investigation into Google and imposed new tariffs on a range of US products moments after President Donald Trump slapped a 10% tariff on goods from Beijing, reigniting a trade war between the world’s largest economies.

China will probe the US tech giant for alleged antitrust violations, according to a Tuesday statement from the State Administration for Market Regulation. Beijing also announced 15% levies on coal and liquefied natural gas (LNG) and 10% on oil and agricultural equipment from the United States. 

"The US's unilateral imposition of tariffs seriously violates the rules of the World Trade Organisation (WTO)," China’s Finance Ministry said in a statement announcing tariffs. "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 moves from China came almost as soon as the US tariffs kicked in. It contrasts with the situations in Mexico and Canada, where both nations won reprieve from 25% tariffs for a month after reaching separate agreements with Trump. In an executive order on Saturday, Trump called on China’s Communist Party to stop criminal organisations facilitating the flow of illicit drugs.

The Chinese measures announced include:

  • Export control on tungsten-related materials
  • Adding PVH Corporation, owner of Calvin Klein and Illumina Inc to an unreliable entity list

The dollar rebounded, with the offshore yuan extending its loss to 0.3% while the currencies of Australia and New Zealand, which have strong trade links to China, slid almost 1%. Other Asian currencies like the Thai baht and the Indonesian rupiah pared their gains.

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, the United States, on Oct 9, 2024. (File photo: Reuters)

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, the United States, on Oct 9, 2024. (File photo: Reuters)

Google's search and internet services for consumers have been unavailable in China since 2010, although the company retains operations in the country, primarily around its advertising business.

The US supplied about 6% of China’s LNG imports last year, according to ship-tracking data.

Trump over the weekend ordered a blanket levy on Chinese exports to take effect after midnight on Tuesday in the US, for what he calls Beijing’s failure to prevent the flow of illegal drugs. The orders included retaliation clauses that would increase tariffs if the countries responds in kind.  

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