By Agency Report
China has placed counter tariffs on US imports that will come into effect on February 10 after President Donald Trump placed 10 percent levies on Chinese goods.
For instance, China put several companies, including Google, on notice for possible sanctions, in a measured response to the sweeping duties on Chinese imports imposed by President Donald Trump.
Mexico’s President Claudia Sheinbaum and Canada’s Prime Minister Justin Trudeau have announced a 30-day suspension on US tariffs after an agreement was reached with Trump.
The Mexican and Canadian leaders have agreed to send thousands of police to their borders with the US to fight drug trafficking and undocumented migration.
The Trump administration has locked US Agency for International Development (USAID) workers out of their headquarters in central Washington, DC, as it moved to close the agency.
Democrat lawmakers have questioned the legality of billionaire Elon Musk’s role in sweeping changes at key US federal government bodies, including Treasury and USAID.
A judge in Washington, DC has extended an order pausing Trump’s plan to freeze potentially trillions in US federal government spending.
It was unclear when Trump and Chinese President Xi Jinping would speak, a step seen as critical to potentially defusing the situation.
Earlier on Tuesday, Trump trade adviser Peter Navarro said the two leaders would speak later in the day.
Those remarks suggested to investors there was scope for China to receive a temporary reprieve as Trump granted to Mexico and Canada on Monday, helping push stocks and oil prices higher.
The Wall Street Journal, however, cited a U.S. official saying Trump and Xi would not speak on Tuesday.
Beijing’s limited reply to Trump’s imposition of a 10% tariff on all Chinese imports underscored the attempt by Chinese policymakers to engage Trump in talks to avert an outright trade war between the world’s two largest economies.
Capital Economics, a U.K.-based research firm, estimated that China’s additional tariffs would apply to about $20 billion of annual imports, compared with the $450 billion worth of Chinese goods subject to the Trump tariff that took effect at 12:01 a.m. ET on Tuesday (0501 GMT).
“The measures are fairly modest, at least relative to U.S. moves, and have been calibrated to send a message to the U.S.,” Julian Evans-Pritchard, the firm’s head of China Economics, said in a note.
Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement.
Trump suggested on Sunday that the European Union would be his next target for tariffs, but did not say when.
Ursula von der Leyen, head of the EU’s executive European Commission, said Brussels would be ready for tough negotiations but underlined the need to lay foundations for a stronger partnership with the EU’s largest trade and investment partner.
“We will be open and pragmatic in how to achieve that. But we will make it equally clear that we will always protect our own interests – however and whenever that is needed,” she said in a speech.
The European Commission and the new U.S. administration have been in contact at a technical level but von der Leyen and Trump have not spoken directly yet, a Commission spokesperson said.
China’s new measures, announced as the Trump tariffs took effect, include a 15% levy on U.S. coal and LNG and 10% for crude oil, farm equipment and a small number of trucks as well as big-engine sedans shipped to China from the United States.
China said it was starting an anti-monopoly investigation into Alphabet’s (GOOGL.O), opens new tab Google. It put PVH Corp (PVH.N), opens new tab, the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina (ILMN.O), opens new tab, on a list for potential sanctions.
PVH said in a statement it was surprised and “deeply disappointed” by China’s decision, adding it maintains strict compliance with all relevant laws, regulations and standards.
Illumina has a long-standing presence in China … Wherever Illumina operates, we comply with all laws and regulations,” an Illumina spokesperson said in an email.
Google declined to comment on the investigation.
Mexican President Claudia Sheinbaum’s letter to Trump
Dear President Donald Trump,
I am writing to you regarding your statement on Monday, November 25, concerning migration, fentanyl trafficking, and tariffs.
You may not be aware that Mexico has developed a comprehensive policy to assist migrants from different parts of the world who cross our territory en route to the southern border of the United States. As a result, and according to data from your country’s Customs and Border Protection (CBP), encounters at the Mexico–United States border have decreased by 75% between December 2023 and November 2024.
Moreover, half of those who arrive do so through a legally scheduled appointment under the United States’ CBP One program. For these reasons, migrant caravans no longer arrive at the border.
Even so, it is clear that we must work together to create a new labor mobility model that is necessary for your country, as well as address the root causes that compel families to leave their homes out of necessity. If even a small percentage of what the United States allocates to war were instead dedicated to building peace and fostering development, it would address the underlying causes of human mobility.
On another note, and for humanitarian reasons, Mexico has consistently expressed its willingness to help prevent the fentanyl epidemic in the United States from continuing. This is, after all, a public health and consumption problem within your society. So far this year, Mexican armed forces and prosecutors have seized tons of various types of drugs, 10,340 firearms, and have detained 15,640 individuals for violence related to drug trafficking.
Furthermore, the Mexican Congress is in the process of approving a constitutional reform to classify the production, distribution, and commercialization of fentanyl and other synthetic drugs as a serious crime without bail. However, it is publicly known that the chemical precursors used to produce this and other synthetic drugs are illegally entering Canada, the United States, and Mexico from Asian countries. This underscores the urgent need for international collaboration. You must also be aware of the illegal trafficking of firearms into my country from the United States.
Seventy percent of the illegal weapons seized from criminals in Mexico come from your country. We do not produce these weapons, nor do we consume synthetic drugs. Tragically, it is in our country that lives are lost to the violence resulting from meeting the drug demand in yours.
President Trump, migration and drug consumption in the United States cannot be addressed through threats or tariffs. What is needed is cooperation and mutual understanding to tackle these significant challenges. For every tariff, there will be a response in kind, until we put at risk our shared enterprises. Yes, shared. For instance, among Mexico’s main exporters to the United States are General Motors, Stellantis, and Ford Motor Company, which arrived in Mexico 80 years ago. Why impose a tariff that would jeopardize them? Such a measure would be unacceptable and would lead to inflation and job losses in both the United States and Mexico.
I am convinced that North America’s economic strength lies in maintaining our trade partnership. This allows us to remain competitive against other economic blocs. For this reason, I believe that dialogue is the best path to understanding, peace, and prosperity for our nations. I hope our teams can meet soon to continue building joint solutions.
