China to impose tariffs on US’ energy, machinery and other goods from 10 Feb

After the 10 per cent tariff hike imposed by US President Donald Trump on Chinese goods came into effect on Tuesday (4 Feb), Chinese officials immediately launched countermeasures, imposing 10 to 15 per cent tariffs on energy products, machinery and vehicles imported from the US. NTU Emeritus Professor of Economics Tan Kong Yam noted that China's tariffs against the US are a modest response that avoids a “full-blown tit-for-tat escalation”. He explained that China's tariffs are targeted at the US' energy and key manufacturing industries, which shows that China hopes to exert pressure in areas that can have a substantial impact without harming broader economic interests. He believes that a tax of 10 to 15 per cent shows that China "has the ability to retaliate with relative restraint" to avoid triggering a more destructive trade war.

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