China imposed targeted tariffs on American imports on Tuesday and put several U.S. companies, including Google, on notice for possible sanctions, in a measured response to the sweeping duties on Chinese imports imposed by President Donald Trump.
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 at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement.
A White House spokesperson said that Trump plans to speak to Chinese President Xi Jinping later in the week.
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 the foundations for a stronger partnership with the EU’s largest trade and investment partner.
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