A potential trade war 2.0 could be setting off between China and the U.S. as China has responded to President Donald Trump’s 10% import tariff on ALL Chinese goods with tariffs of their own.
These tariffs include a 15% tariff on U.S. coal and a 10% tariff on crude oil, farm equipment, and select vehicles. In addition to that, numerous investigations into U.S. companies have been announced, with Alphabet Inc being the biggest of those targeted companies.
China hits back with tariffs on U.S. goods– japantoday.com
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China on Tuesday slapped tariffs on U.S. imports in a swift response to new U.S. duties on Chinese goods, renewing a trade war between the world’s top two economies as President Donald Trump sought to punish China for not halting the flow of illicit drugs.
Trump’s additional 10% tariff across all Chinese imports into the U.S. came into effect at 12:01 a.m. on Tuesday.
Within minutes, China’s Finance Ministry said it would impose levies of 15% for U.S. coal and LNG and 10% for crude oil, farm equipment and some autos. The new tariffs on U.S. exports will start on Feb 10, the ministry said.
China also said it was starting an anti-monopoly investigation in Alphabet Inc’s Google, while including both PVH Corp, the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina on its “unreliable entities list”.
Separately, China’s Commerce Ministry and its Customs Administration said it is imposing export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items to “safeguard national security interests”. China controls much of the world’s supply of such rare earths that are critical for the clean energy transition.
Under President Donald Trump, the DOJ arrested former senior Federal Reserve advisor John Harold Rogers, 63, for allegedly stealing trade secrets from the U.S. agency that controlled China’s access to U.S. markets. He took those trade secrets and gave them to his CCP handlers.
Former Federal Reserve Adviser Arrested for Allegedly Passing US Trade Secrets to China – NTD
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Prosecutors on Jan. 31 arrested a former senior Federal Reserve advisor, accusing him of stealing trade secrets from the agency that could allow China to manipulate the U.S. market.
John Harold Rogers, 63, worked for 11 years as a senior advisor for the international finance division of the Federal Reserve Board of Governors, the main governing body for the U.S. central bank.
A federal indictment alleged that Rogers began working with Chinese conspirators since at least 2018. The Chinese handlers worked for the Chinese intelligence and security apparatus and posed as graduate students at a Chinese university, according to the filing.
Rogers, in the collaboration, allegedly solicited trade-secret information that included proprietary economic data sets, China tariff deliberations, and briefing books for specific board governors. He also allegedly solicited internal discussions and forthcoming announcements from the Federal Open Market Committee (FOMC), a 12-member body consisting of the seven Federal Reserve board of governors, the New York Federal Reserve Bank president, and four of the remaining 11 Reserve Bank presidents that rotate on an annual basis.
Both Canada and Mexico faced a 25 percent tariff from the U.S. after President Trump ordered it into effect. Mexico announced a temporary deal delaying the tariffs by one month. China has so far appealed to the World Trade Organization (WTO). Trump has warned Americans that there might be a price to pay for the tariff wars, but, in the end, it will be worth it long-term for American prosperity. The EU came out against the tariffs, with concerns they might be next.
Mexico has vowed to send 10,000 national guard troops to the northern border in response to the tariff threat. Canada has vowed it will respond to the U.S. with in-kind tariffs.
Trade War Heats Up After Trump Orders Tariffs and Canada Retaliates– www.nytimes.com
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The United States and its biggest trading partners were hurtling on Sunday into a new era of protectionism as Canada, Mexico and China said they would adopt countermeasures against new tariffs levied by President Trump.
From honey to tomatoes, and from clothes to toilet bowls, a wide range of American goods that cross the border into Canada, worth more than $100 billion, will soon be hit with a 25 percent tariff.
“We don’t want to be here,” Prime Minister Justin Trudeau said in a somber televised address from Ottawa on Saturday night in which he spoke of the deep bonds between the neighbors. “We didn’t ask for this.”
On Sunday, China said it would “take corresponding countermeasures to firmly safeguard its rights and interests.” It also said it would take legal action at the World Trade Organization.
And in a video released on Sunday, President Claudia Sheinbaum of Mexico said that she would unveil the first steps of her government’s so-called Plan B plan on Monday if an agreement with the United States could not be reached. Ms. Sheinbaum earlier warned of retaliatory “tariff and nontariff measures.”
Mexico, US reach deal that puts Trump tariffs on hold – USA Today
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Mexico and the United States have reached a one-month agreement to stave off tariffs and a trade war, the threat of which sent global markets tumbling early Monday.
The tariffs on Mexico were set to go into effect Tuesday. By midday Monday, Trump’s 25% tariff on Canadian goods and a 10% tariff on Chinese goods still appeared on course to begin Tuesday.
Mexico President Claudia Sheinbaum Pardo said her country will send 10,000 National Guard troops to its northern border, while President Donald Trump agreed to work to slow the flow of American weapons south of the border.
Trump had promised 25% tariffs on all goods from Mexico before the two leaders worked out an agreement early Monday in a phone call.
Trade War Heats Up After Trump Orders Tariffs and Canada Retaliates– www.nytimes.com
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The United States and its biggest trading partners were hurtling on Sunday into a new era of protectionism as Canada, Mexico and China said they would adopt countermeasures against new tariffs levied by President Trump.
From honey to tomatoes, and from clothes to toilet bowls, a wide range of American goods that cross the border into Canada, worth more than $100 billion, will soon be hit with a 25 percent tariff.
“We don’t want to be here,” Prime Minister Justin Trudeau said in a somber televised address from Ottawa on Saturday night in which he spoke of the deep bonds between the neighbors. “We didn’t ask for this.”
On Sunday, China said it would “take corresponding countermeasures to firmly safeguard its rights and interests.” It also said it would take legal action at the World Trade Organization.
And in a video released on Sunday, President Claudia Sheinbaum of Mexico said that she would unveil the first steps of her government’s so-called Plan B plan on Monday if an agreement with the United States could not be reached. Ms. Sheinbaum earlier warned of retaliatory “tariff and nontariff measures.”
Trump announces significant new tariffs on Mexico, Canada and China, sparking retaliatory actions – CNN– news.google.com
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- Trump announces significant new tariffs on Mexico, Canada and China, sparking retaliatory actions CNN
- Canada’s Justin Trudeau announces retaliatory tariffs following Trump’s executive order NBC News
- Canada’s counter-tariff plan targets food and drink, furniture and perfume CTV News
- Here’s what will get more expensive from Trump’s tariffs on Mexico, Canada and China CNN
- Mexican president orders retaliatory tariffs against U.S. Reuters Canada
Trudeau Details Canada’s Retaliation Plans in Emotional Rebuke of Trump Tariffs – The New York Times– news.google.com
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Prime Minister Justin Trudeau of Canada laid out more than $100 billion in retaliatory tariffs against the United States late Saturday, in a forceful response to President Trump’s decision to impose levies on a range of Canadian goods.
But he made clear that Canada was doing so reluctantly.
“We don’t want to be here,” Mr. Trudeau said in a somber televised address from Ottawa that evoked the deep bonds between the two neighbors and close trading partners. “We didn’t ask for this.”
Mr. Trudeau spoke hours after President Trump hit Canada and Mexico with tariffs of 25 percent on all goods, with a partial carve out for Canadian energy and oil exports. Mr. Trudeau said that Canada would swiftly impose its own “far-reaching” retaliatory tariffs of 25 percent on 155 billion Canadian dollars ($106 billion) worth of U.S. goods.
Canada on Sunday published a detailed list of all the U.S. goods imported into Canada that will be subjected to the tariff, including hundreds of products including honey, tomatoes, whiskey and peanut butter. Also on the list were garments, porcelain goods such as toilets and bath tubs, as well as refrigerators and dish washers.
How Trump’s tariffs might affect commodity and energy sectors– www.investing.com
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U.S. President Donald Trump slapped Canada and Mexico with duties of 25% and China with a 10% levy on Saturday, calling the measures necessary to combat illegal immigration and the drug trade.
Canada and Mexico immediately vowed retaliatory measures, and China said it would challenge Trump’s levies at the World Trade Organization and take other countermeasures.
Trump’s move has sparked volatility in the commodities market. Here are some reactions to the news:
GOLDMAN SACHS
“We still expect Canadian oil producers to eventually bear most of the burden of the tariff with a $3 to $4 a barrel wider-than-normal discount on Canadian crude given limited alternative export markets, with U.S. consumers of refined products bearing the remaining $2 to $3 a barrel burden.
“We estimate Canadian natural gas exports to the U.S. might drop by a modest 0.16 billion cubic feet per day (bcfd) as a result of 10% import tariffs, with little if any impact on U.S. gas prices.”
China’s non-specific response to Trump tariffs stands in contrast to Canada’s retaliatory measures– www.cbc.ca
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China’s government on Sunday denounced the Trump administration’s imposition of a long-threatened 10 per cent tariff on Chinese imports while leaving the door open for talks with the U.S. that could avoid a deepening conflict.
Beijing will challenge President Donald Trump’s tariff at the World Trade Organization — a symbolic gesture — and take unspecified “countermeasures” in response to the levy, which takes effect on Tuesday, China’s finance and commerce ministries said.
That response stopped short of the immediate escalation that had marked China’s trade showdown with Trump in his first term as president and repeated the more measured language Beijing has used in recent weeks.
U.S. tariff move sparks criticism, concern in Germany – Xinhua
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U.S. President Donald Trump’s tariff move against Canada, Mexico and China has sparked criticism and concern in Germany.
On Saturday, Trump ordered to impose a 25-percent tariff on imports from Mexico and Canada, and a 10-percent tariff on Chinese goods. He also signaled that the European Union (EU) could be next, citing the bloc’s persistent trade surplus with the U.S.
While reaffirming Germany’s commitment to economic ties with the U.S., German Chancellor Olaf Scholz emphasized that the first priority should be “not to divide up the world with many tariff barriers.”
Donald: ‘Pain’ Caused By Tariffs ‘Worth The Price That Must Be Paid’– crooksandliars.com
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A Wall Street Journal opinion piece titled, ‘The Dumbest Trade War in History’ really got under Donald’s thin-skin, so he took to Truth Social to rant against the paper while admitting that we may feel some pain from his trade war.
“The “Tariff Lobby,” headed by the Globalist, and always wrong, Wall Street Journal, is working hard to justify Countries like Canada, Mexico, China, and too many others to name, continue the decades long RIPOFF OF AMERICA, both with regard to TRADE, CRIME, AND POISONOUS DRUGS that are allowed to so freely flow into AMERICA,” he scribbled. “THOSE DAYS ARE OVER!”
“The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the “Stupid Country” any longer,” It continued. “MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS! Why should the United States lose TRILLIONS OF DOLLARS IN SUBSIDIZING OTHER COUNTRIES, and why should these other countries pay a small fraction of the cost of what USA citizens pay for Drugs and Pharmaceuticals, as an example?”
“THIS WILL BE THE GOLDEN AGE OF AMERICA!” he added. “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID. WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!”
EU slams Trump tariffs, says it will ‘respond firmly’ if targeted– www.channelnewsasia.com
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BRUSSELS: The European Union on Sunday (Feb 2) blasted US President Donald Trump’s sweeping tariffs on Canada, Mexico and China, and said the 27-nation bloc would hit back “firmly” if targeted.
Brussels had until now indicated it hoped to avoid a trade conflict with Trump through negotiation.
But on Friday the US leader doubled down by saying he “absolutely” planned to target the EU in future, as he slapped levies on his north American neighbours and China.
“The European Union regrets the US decision to impose tariffs on Canada, Mexico and China,” said a spokesman for the European Commission.
“Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.”
The spokesman said “the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods”.
“At this time, we are not aware of any additional tariffs being imposed on EU products,” he added.
With the inclusion of Elon Musk to President Donald Trump’s cabinet, it is no surprise to this writer that Trump appears to be softening his position on China. Musk, whose company Tesla recently lobbied the EU to protect China’s EV industry from tariffs, has a vested interest in U.S.-China relations remaining good. The one fly in the ointment might be Trump’s aggressive push to get China out of the Panama canal.
So far, Trump has softened his position on tariffs, though he continues to threaten China if they fail to stop delivering fentanyl to Mexico they will face daunting tariffs. China sent their VP, Han Zheng, to the inauguration, but the VP also met with Elon Musk to work out a deal between the CCP and Musk’s EV company, Tesla, which operates factories in China and hopes to sell to the China market.
China’s official meets with Elon Musk as Trump begins second term · TechNode– technode.com
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Chinese Vice President Han Zheng on Jan. 19 called on US businesses to help boost trade relations between the rival countries in a meeting with Elon Musk, chief executive of Tesla and a member of Trump’s incoming administration, in Washington.
Why it matters: The meeting came just a day before Donald Trump took office for his second term as President of the United States on Monday at the US Capitol.
- Han, who represented China at Trump’s inauguration, used the visit to also meet with new US Vice President JD Vance, as well as business leaders from US companies such as FedEx and Visa, according to a Bloomberg report.
Billions of dollars in value were lost in the tech market, which also includes the Chinese tech market, after a Chinese-owned tech company released a powerful AI reasoning model called DeepSeek that is far cheaper and a little more powerful than current AI models like ChatGPT. The world’s richest 500 people lost over $100 billion after the market responded to the stunning news.
Marc Andreesen, who created Netscape Navigator, called the release “AI’s Sputnik moment,” referring to the shock in America when, in 1959, the Soviet Union successfully launched a space satellite called Sputnik at a fraction of the cost of then-current U.S. programs. Donald Trump said of the “Sputnik moment,” that it “should be a wake-up call for our industries that we need to be laser focused on competing to win.”
DeepSeek AI Triggers A Collective Loss of $94 Billion In Wealth Of Tech Billionaires, Mark Zuckerberg And Jeff – Times Now
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DeepSeek AI has taken the tech industry by storm with its cost and resource-effective advanced-language model. DeepSeek engineers claim that their open-source language learning model utilises fewer and cheaper chips to perform the same tasks as any other AI model out there at a ‘shoestring cost’ of $5.6 million. This has led many investors to rethink why a significant capital investment is required to build the strongest models when a competent AI model has been developed at a fraction of development costs.DeepSeek AI is reportedly outperforming ChatGPT in areas such as mathematics and coding, positioning itself as a new competent AI model. The Chinese AI startup quickly emerged as the no.1 free app on the iOS app store, emerging as a free alternative against ChatGPT. DeepSeek performs all the functions of an open-source AI language learning model by utilising just 2000 chips, DeepSeek engineers reported. Whereas ChatGPT required 10,000 Nvidia GPUs to process its training data.DeepSeek AI was founded in 2023, by Liang Wenfeng. Headquartered in Hangzhou, China, this new AI model is set to revolutionise the tech industry as it has successfully developed artificial general intelligence at a comparatively low cost…As per a report by Bloomberg, billionaires tied to artificial intelligence suffered losses. Huang’s wealth decreased by $20.1 billion, a 20% decline, while Oracle Corp. co-founder Larry Ellison’s $22.6 billion loss was greater in absolute figures, yet only accounted for 12% of his total fortune, as per the Bloomberg Billionaires Index. Michael Dell of Dell Inc. saw a $13 billion decrease in his wealth, while Binance Holdings Ltd. co-founder Changpeng “CZ” Zhao lost $12.1 billion.
Taiwan accuses China of damaging submarine cable off its coast – FT – RBC-Ukraine
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Taiwan said a Chinese vessel had damaged an underwater internet cable off the island’s northern coast. This led to a temporary disruption of communication, the Financial Times reports.
According to the agency, the cable was damaged on January 3 near the port of Keelung. There, the cargo ship Shunxing39, registered under the flag of Cameroon, probably damaged the submarine cable, which is part of the Trans-Pacific Express Cable System.
Despite the fact that the vessel belongs to Jie Yang Trading Limited, a Hong Kong-registered company, its director is Guo Wenjie, a Chinese citizen. Taiwan believes that this incident may be part of China’s strategy to sever the island’s external communications.
