China slaps levies on U.S. imports as Canada, Mexico tariffs paused

BEIJING, China (AFP) — China said Tuesday it would impose tariffs of 15 percent on imports of coal and liquefied natural gas from the United States (US), in retaliation for Washington’s 10 percent levies on Chinese goods, as US President Donald Trump’s talks with leaders of Canada and Mexico resulted in a 30-day pause of 25 percent tariffs on imports from the neighboring countries.

Beijing’s finance ministry also unveiled 10 percent tariffs on imports from the US of crude oil, agricultural machinery, large-displacement vehicles and pickup trucks.

The new measures were in response to the “unilateral tariff hike” by Washington over the weekend, Beijing said.

Trump on Saturday announced sweeping measures against major trade partners including Canada and Mexico, with goods from China facing an additional 10 percent tariff on top of the duties they already endure.

Trump said the measures aimed to punish countries for failing to halt flows of illegal migrants and drugs including fentanyl into the US.

The US move, China said, “seriously violates World Trade Organization (WTO) rules, does nothing to resolve its own problems, and disrupts normal economic and trade cooperation between China and the United States.”

“China has filed a case against the US tariff measures under the WTO dispute settlement mechanism,” the commerce ministry also said in a statement, adding the US actions were of a “malicious nature.”

Beijing’s tariffs, which come into force next Monday, were announced shortly after Trump said he would hold a call with President Xi Jinping in the next 24 hours.

Canada, Mexico deals

Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau had both earlier struck last-minute deals with Trump to tighten border measures against the flow of migrants and fentanyl into the US, leading to a 30-day pause on threatened tariffs.

Asian equities spiked Tuesday on news of the paused tariffs, and hopes that similar negotiations could relieve the levies against the world’s number-two economy provided extra optimism. However, traders pared some of those gains as China unveiled its measures.

Global stock markets had slumped Monday as Trump’s threat of sweeping 25 percent levies on imports from Canada and Mexico sparked fears of a global trade war.

Trump said that after “very friendly” talks with Sheinbaum he would “immediately pause” the tariffs on Mexico, and that his counterpart had agreed to send 10,000 troops to the US-Mexico frontier.

Trudeau pledged stronger border measures to stop crossings of migrants and illicit drugs.

He said Monday that Canada would implement a Can$1.3 billion (US$900 million) plan to secure the border.

This will see the number of “frontline personnel” fixed at 10,000. Just last December, Canadian authorities said they had 8,500 deployed.

The border will be reinforced with new helicopters and other unspecified technology, Trudeau said.

In addition, the prime minister said he “signed a new intelligence directive” to combat organized crime, backed by Can$200 million in new spending, and will launch a joint Canada-US taskforce to stem transnational drug trafficking and money laundering.

He also agreed to Trump’s demand to list drug cartels as terrorists, as well as appoint an official to oversee efforts against the opioid fentanyl.

The announcement comes one day before Trump was to slap 25 percent tariffs on Canadian imports, and a 10 percent levy on oil.