Beijing, February 4, 2025 – In a swift retaliatory move, China announced an investigation into Google for alleged anti-trust violations, moments after President Donald Trump imposed a 10% tariff on Chinese goods. The State Administration for Market Regulation stated that the probe was initiated due to suspected violations of China’s Anti-Monopoly Law.
Additionally, Beijing imposed new tariffs on a range of US products, including a 15% levy on coal and liquefied natural gas, and a 10% tariff on oil and agricultural equipment. The measures also include export controls on tungsten-related materials and the addition of PVH Corp. (owner of Calvin Klein) and Illumina Inc to an unreliable entity list.
The offshore yuan extended losses amid the escalating trade tensions, dropping 0.3% to 7.3340, while proxies such as the Australian and New Zealand dollars fell by at least 0.8%.
The US leader’s blanket levy on Chinese exports, aimed at curbing the flow of illegal drugs, included retaliation clauses that would increase tariffs if China responded in kind.
This latest development marks a significant escalation in the ongoing trade war between the world’s two largest economies.