China responds to Trump with swift tariffs: Tariffs on US goods, blacklist of 10 companies and lawsuit

AUTHOR:M.J. GDNUS

Just minutes after the new US tariffs took effect, China responded with a series of economic countermeasures, further escalating the trade conflict with Washington.

Beijing imposed tariffs of up to 15 percent on certain US products, including soybeans and chicken, added 10 US companies to the "list of unreliable entities" and imposed export restrictions on 15 US firms.

China's Ministry of Commerce said the measures were taken to protect the country's national security and interests, as well as to fulfill international obligations on the non-proliferation of sensitive technologies.

Among the US companies that were blacklisted are those that, according to Beijing, participated in arms sales to Taiwan or were involved in cooperation on defense technologies with Taiwan, despite strong opposition from China.

In addition to the new tariffs, China has filed a complaint against the US at the World Trade Organization (WTO) over Trump's latest tariff hike. Beijing has made a similar move before, after the US imposed a previous 10% tariff on Chinese goods.

Although China's countermeasures are significant, analysts say they are still relatively modest. Chinese tariffs are up to 15%, while US tariffs have now been increased to 25%, and with the previously imposed levies, they cover a wider range of products.

China bans US company Illumina

One of Beijing's most significant decisions is a ban on the sale of products by US company Illumina, the world's leading manufacturer of genetic sequencing technologies. The move further escalates the technology war between the two countries, especially in the strategically important biotechnology sector.

Illumina, based in San Diego, has already been blacklisted by China along with PVH Corp, owner of the fashion brand Calvin Klein, which caused their shares to fall.

Despite these measures, Illumina CEO Jacob Theisen previously stated that the company still sees potential in the Chinese market and that it operates in compliance with all regulations. However, the new ban now completely prevents the sale of its genetic products in China.

It remains to be seen how the US will respond to these measures, but one thing is certain – the trade war between the world’s two largest economies is now entering a new, even more tense phase.