China has responded with counter tariffs on US goods, sparking fears of a major trade war between the two countries.
Donald Trump slapped 10% levies on all Chinese imports early on Tuesday, as he makes good on his threat to get tough with Beijing.
However, within minutes China retaliated, imposing tariffs on an array of US goods.
The counter measures include a 15% tax on coal and liquefied natural gas imports from the US.
Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.
At the same time Beijing has launched an investigation into Google, with state officials claiming the company may have violated anti-monopoly laws.
Although Beijing has blocked Google’s search services in the country since 2010, the company still does business in China.
In particular, Google provides apps and games to the Chinese market through partnership with local developers.
Beijing accused the Trump White House of breaking international laws, as it announced its retaliatory measures.
A statement said: “The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organisation.
“It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US.”
Beijing has also filed a complaint with the World Trade Organisation (WTO) in response to the new tariffs.
In a statement, China’s Commerce Ministry says it is resorting to the WTO’s dispute settlement “to safeguard its legitimate rights and interests”.
They added: “The US imposition of additional tariffs on Chinese products severely violates WTO rules.
“This action is egregious in nature and represents a typical example of unilateralism and trade protectionism.”
Donald Trump sees tariffs as a way of growing the US economy, protecting jobs, and raising tax revenue.
But, economic studies of the impact of tariffs – which Trump also imposed during his first term in office – suggest the measures ultimately made prices higher for US consumers.
