China responds to Trump’s tariffs with 10% tax on large-displacement cars, pick-up trucks from the US

Following US president Donald Trump’s decision to impose tariffs on imports from China (as well as Canada and Mexico), the Chinese government has responded in kind by announcing a broad package of economic measures targeting the United States.

Set to come into effect on February 10, the measures include a 10% tariff on agricultural machinery, large-displacements cars as well as pick-up trucks. China is not a big importer of US pick-up trucks and most of its imported cars are from Europe and Japan, so this tariff won’t impact its consumers too much.

In addition to tariffs on goods, a 15% tax will be introduced for certain types of coal and liquefied natural gas (LNG), along with a 10% tax on crude oil. According to the BBC, China is the world’s largest importer of coal, although the United States isn’t among the main suppliers – Indonesia supplies most of China’s coal.

On the flipside, Chinese customs data indicates the country has been increasing imports of LNG from the US, with volumes nearly double that of 2018 levels. As for crude oil, US imports made up just 1.7% of China’s total crude oil bought from abroad in 2023, suggesting the impact of the tariffs to be minimal. Of a bigger concern for the US is China’s decision to impose export controls on 25 rare metals, some of which are key for many electrical products and military equipment.

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