Trump’s 10% tariffs on China causes 15% tariff and Google probe reactions

President Donald Trump fired the first shot in a new trade war, imposing a 10% tariff on all Chinese goods just after the US hit its midnight deadline on Tuesday.

The decision, which Trump signed off on over the weekend, reignited tensions between the two largest economies on Earth. Hours after the tariffs hit, Beijing retaliated with new levies on US products and launched an antitrust investigation into Google.

The White House framed the tariffs as necessary punishment for what it called China’s failure to curb the flow of illegal drugs into the US, including fentanyl. “If we can’t make a deal with China, then the tariffs will be very, very substantial,” Trump told reporters from the Oval yesterday.

There was no deal. Instead, the new tariffs took effect.

China hits back with tariffs and a Google investigation 

China’s finance ministry announced it would impose a 15% tariff on US coal and liquefied natural gas, starting February 10. The ministry also slapped a 10% tariff on American crude oil, farm equipment, and certain US-made cars and trucks.

Beijing warned that these were just the beginning of its “corresponding countermeasures.”

China’s response wasn’t limited to goods. It hit America’s tech sector where it hurts. Beijing launched an investigation into Google for alleged anti-competitive practices.

The State Administration for Market Regulation said in a Tuesday statement that it would probe whether the tech giant violated China’s anti-monopoly law. The investigation comes as Google faces similar scrutiny worldwide. The US government recently won a lawsuit against the tech giant too, claiming the company abused its dominance in the search engine market.

In August, Google lost a major lawsuit in the US after the Justice Department accused it of maintaining an illegal monopoly in the search engine market. The court ruled that Google had created barriers to entry for competitors.

Now US officials are pushing for the company to sell its Chrome browser and end exclusive agreements with major smartphone makers like Apple and Samsung.

Across the Atlantic, Google faces another investigation from the UK’s Competition and Markets Authority. British regulators are examining whether Google qualifies as having “strategic market status,” a label that could subject the company to stricter rules under new UK laws.

The Chinese government declared the US tariffs a violation of World Trade Organization rules and confirmed that it had already filed a complaint with the WTO.

The commerce ministry added another punch, announcing export controls on critical minerals like tungsten, molybdenum, and ruthenium—elements vital for global tech production. Analysts say this could disrupt supply chains for key industries, including electronics and defense manufacturing.

Trump reaches agreement with Canada and Mexico

Meanwhile, on Monday, Trump agreed to a 30-day pause on the planned 25% tariffs targeting imports from Canada and Mexico after high-level discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum Pardo, both of whom promised action on the fentanyl crisis, which is Trump’s whole issue in the first place.

In a tweet on Monday, Trudeau said, “I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”

President Claudia also shared that: “We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements. Mexico will immediately reinforce the northern border with 10,000 members of the National Guard to prevent drug trafficking from Mexico to the United States, particularly fentanyl.”

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