NEW DELHI: China has imposed tariffs on certain US imports in response to new US duties on Chinese goods, reigniting a trade dispute between the two largest economies. The additional 10% tariff on all Chinese imports into the US came into effect, following US President Donald Trump’s repeated warnings to China over its role in the flow of illicit drugs into the US.

In retaliation, China’s Finance Ministry announced it would levy tariffs of 15% on US coal and liquefied natural gas (LNG) and 10% on crude oil, farm equipment, and some autos. Furthermore, China initiated an anti-monopoly investigation into Alphabet Inc’s Google and added companies like PVH Corp, which owns brands such as Calvin Klein and US biotechnology firm Illumina to its “unreliable entities list.”

Additionally, China’s Commerce Ministry and Customs Administration imposed export controls on certain rare earths and metals crucial for high-tech gadgets and clean energy technologies.

China’s new tariffs on targeted US exports will come into effect on February 10, providing both nations some time to attempt to resolve the issue. Trump is expected to speak with Chinese President Xi Jinping later this week.

Meanwhile, Trump recently suspended a proposed 25% tariff on Mexico and Canada, agreeing to a 30-day pause in exchange for commitments on border and crime enforcement.

The ongoing trade war between the US and China, which began in 2018, has significantly disrupted global supply chains and affected the world economy. Analysts predict that further tariffs are likely as the trade conflict continues.

Trump has also threatened to raise tariffs on China further if it fails to curb the flow of fentanyl, a powerful opioid, into the US.