China hits back at US tariffs with 15% tariffs

China’s finance ministry said on Tuesday it would impose a 15% tariff on US coal and liquefied natural gas imports and a 10% tariff on crude oil, farm equipment and some cars, starting on Feb. 10.

The tariff announcement comes as additional US tariffs of 10% on Chinese exports took effect, threatening to reignite a trade war between the world’s two largest economies, in a move by President Donald Trump to punish Beijing for failing to stop the flow of illegal drugs.

In contrast, Trump on Monday suspended a 25% tariff on Mexico and Canada at the last minute, agreeing to a 30-day reprieve in exchange for tightening border controls and cracking down on organized crime.

But China did not receive a similar exemption, with the new tariffs taking effect at 05:01 GMT on Tuesday.

A White House spokesman said Trump would not hold talks with Chinese President Xi Jinping until later in the week.