The big trade war has already begun with China and Canada – a fight back against U.S. tariffs imposed by President Donald Trump on Tuesday.
Beijing, which will immediately begin retaliation, will retaliate immediately, announcing 10% to 15% of hiking in U.S. agriculture and food, as well as export and investment restrictions on 25 U.S. companies.
A few hours ago, President Trump levied an additional 10% of Chinese goods with the green light, which began in GMT. This means responding to a cumulative tariff of 20% China's so-called inaction to stop drug movement Used to make fentanyl, the opioid that has died in the United States.
See also: China sees heavy hits on farm exports to Trump tariffs
Trump also imposed 25% tariffs on Canada and Mexico, two of the U.S.’s top trading partners. Canada said it had $100 billion in tariffs but would start with $21 billion worth of goods, according to Foreign Secretary Melanie Joly.
China's Ministry of Finance said an additional 15% tariff should be imposed on US chicken, wheat, corn and cotton, and taxes on soybeans, sorghum, pork, beef, water production, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits, fruits and dairy products starting from March 10.
“The unilateral tariff measures of the United States seriously violate World Trade Organization rules and undermine the basis of economic and trade cooperation between China and the United States,” the Ministry of Commerce of China said in a statement.
It added: “China will firmly protect its legitimate rights and interests.”
According to the report South China Morning.
It says some of the companies that may be blacklisted are:
- Leidos, an aviation and biomedical research company;
- Gibbs & Cox, the largest independent naval construction and marine engineering company in the United States;
- Group W, an analytical modeling and research company;
- IP Video Market Information, a physical security technology company that can perform video surveillance, access control, robotics and weapon detection;
- Sourcemap, a supply chain management company.
“The restriction covers “dual use” projects, or offers both civilian and military applications,” the report said.
Analysts say China's relatively modest reaction is aimed at keeping the door open Possible trade agreements – This topic may be discussed at a parliamentary conference that began this morning in Beijing.
U.S. markets plummeted on Monday afternoon after President Trump said there was “no room for negotiations” with Canada and Mexico.
The S&P 500 index fell 1.7% – its worst day of the year, while the technology-heavy Nasdaq composite rate fell 2.2%. The Dow Jones industrial average fell by nearly 1.5%.
Asian markets also fell, with Nikkei down 1.2%, and Hong Kong's Hang Seng index down 0.3%. Sydney's ASX fell 0.6%, while Seoul's Kospi fell 0.15%, despite Shanghai Comprehensive Materials accounting for 0.2%.
Note: The title of the report was revised on March 4, 2025 and details on the responses of the Asian and US markets to development were added.
See also:
China vows to threaten Trump's 20% tariff next week
Honda “made citizen hybrid due to tariffs rather than Mexico”
Trump's steel tariffs will reach China's supply line through other countries
Chinese ships may face substantial fees to enter U.S. ports
US policy turbulent Asian chip giant with tenterhooks
Japanese automakers want government help deny U.S. tariffs
China needs technology self-reliance to avoid strangulation: xi
Xi Jinping sees attracting Trump to the new US – China trade deal
China sees more debt to deal with Trump's tariffs
