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Trump's tariffs: China strikes back with levies of up to 15%

Published February 4, 2025last updated February 4, 2025

China's Finance Ministry announced new tariffs of up to 15% on a range of US products in response to US measures against China.

https://p.dw.com/p/4pyuL
China says US tariffs go into effect on February 10
China says US tariffs go into effect on February 10Image: IMAGO/Depositphotos
Skip next section What you need to know

What you need to know

  • China announced new tariffs minutes after 10% US tariffs on China took effect Tuesday
  • Chinese tariffs on a range of US goods go into effect on February 10
  • US President Donald Trump struck last-minute deals with leaders of Canada and Mexico to delay tariffs
  • European Union leaders warn against trade war with US

Here's a roundup of headlines from Donald Trump's first days in office, on Tuesday, February 4:

Skip next section What to know about Trump's trade fight with Mexico and Canada
February 4, 2025

What to know about Trump's trade fight with Mexico and Canada

The new tariffs imposed by China in response to a 10% US levy on Beijing come after the US paused the implementation of planned tariffs on imports from Canada and Mexico.

Mexico

US President Trump confirmed that the 25% tariffs on Mexico and Canada would be paused for 30 days following steps taken by both of those countries to prevent the trafficking of opioid fentanyl into the US.

Trump spoke to Mexican President Claudia Sheinbaum on Monday morning, saying the two had "agreed to immediately pause the anticipated tariffs for a one month period" as both countries open talks on border security and trade.

The Mexican president also announced she would immediately send 10,000 soldiers to her northern border to curb the flow fentanyl shipments and illegal migrants into the US. The vast majority of fentanyl seized at the US border comes from Mexico into the US.

Canada

After speaking with the Mexican president, Trump spoke twice with Canadian Prime Minister Justin Trudeau.

The Canadian leader had warned over the weekend that his country would impose 25% retaliatory tariffs on US goods, making clear that it would move to do so reluctantly. "We don’t want to be here," Trudeau told people in an emotional televised address from Ottawa.

Canada on Sunday also published a list of all US imports that would face new tariffs, including food and garments.

Trudeau then announced the pause Monday after speaking with Trump, writing, "I just had a good call with President Trump."

"Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl," the prime minister wrote.

"In addition, Canada is making new commitments to appoint a Fentanyl Czar," he added.

https://p.dw.com/p/4pzxW
Skip next section China announces tariffs on select US goods
February 4, 2025

China announces tariffs on select US goods

China said it would levy a package of tariffs on a range of imports from the US, as Trump's 10% tariffs on China came into effect Tuesday.

A 15% tariff will be imposed on coal and liquefied natural gas, Beijing's Commerce Ministry said on Tuesday.

A 10% tariff will be imposed on crude oil, agricultural machinery, and large-displacement cars, the ministry said, adding that the duties will be implemented starting February 10.

Trump is expected to talk with Chinese President Xi Jinping in the next few days.

https://p.dw.com/p/4pzvi
Skip next section Netanyahu to meet with Trump to discuss Gaza ceasefire
February 4, 2025

Netanyahu to meet with Trump to discuss Gaza ceasefire

Israeli Prime Minister Benjamin Netanyahu is set to meet with US President Donald Trump to discuss the future of the ceasefire in the Gaza Strip.

Netanyahu is the first foreign leader to visit Trump since he took office on January 20.

The trip comes amid preparations to enter the second phase of the ceasefire, which aims to end the war altogether.

Before leaving for the US, Netanyahu said that Israel's offensives in Gaza and Lebanon had "redrawn the map" of the Middle East.

"But I believe that working closely with President Trump we can redraw it even further, and for the better," the Israeli leader said.

Ahead of Netanyahu's visit, Trump told reporters that there were "no guarantees that the peace is going to hold" in Gaza.

Trump has called for Palestinians to move to neighboring countries such as Egypt or Jordan. Both Cairo and Amman have rejected the proposal.

https://p.dw.com/p/4pzvT
Skip next section El Salvador offers the US the chance to 'outsource part of its prison system'
February 4, 2025

El Salvador offers the US the chance to 'outsource part of its prison system'

US Secretary of State Marco Rubio has announced that El Salvador's president has offered to accept deportees from the US of any nationality.

President Nayib Bukele "has agreed to the most unprecedented, extraordinary, extraordinary migratory agreement anywhere in the world," Rubio said after meeting with Bukele at his lakeside residence outside the capital of San Salvador.

"We can send them and he will put them in his jails," Rubio said of migrants of all nationalities detained in the US. "And, he's also offered to do the same for dangerous criminals currently in custody and serving their sentences in the United States even though they're US citizens or legal residents."

Rubio was in El Salvador to transmit the message of President Donald Trump's major crackdown on immigration.

El Salvador has "offered the United States of America the opportunity to outsource part of its prison system," Bukele said in a post on X, formerly Twitter.

He said his country would accept only "convicted criminals" and would charge a fee that "would be relatively low for the US but significant for us, making our entire prison system sustainable."

Washington cannot deport US citizens and any attempts to do so would be met with legal challenges.

https://p.dw.com/p/4pzvU
Skip next section Efforts to thwart Musk's DOGE 'appear to violate the law,' says Trump appointed prosecutor
February 4, 2025

Efforts to thwart Musk's DOGE 'appear to violate the law,' says Trump appointed prosecutor

A Donald Trump appointed prosecutor said that the FBI was looking into the "targeting" of employees involved in Elon Musk's efforts to downsize the government.

Career government officials have reportedly tried to thwart efforts by Musk aides working with the Department of Government Efficiency (DOGE) to gain access to classified information without proper authorization.

DOGE was announced as an effort to slash the federal workforce, but critics say it is being used to target those seen as not in line with Trump's "America First" agenda.

The statement by Edward Martin, the acting US attorney, was evidence that resistance could have legal consequences.

"Our initial review of the evidence presented to us indicates that certain individuals and/or groups have committed acts that appear to violate the law in targeting DOGE employees," Martin said in a statement.

Martin's comments came after he publicly shared a letter he wrote to Musk seeking details on anyone who sought to impede people working with the X owner.

Musk thanked Martin in response.

https://p.dw.com/p/4pzun
Skip next section EU can 'solve' Trump challenge — Germany's Merz
February 4, 2025

EU can 'solve' Trump challenge — Germany's Merz

The head of Germany's conservative opposition Christian Democratic Union (CDU) party, Friedrich Merz, has called for European unity and cooperation in response to whatever economic challenges may be posed by US President Donald Trump.

"We've experienced all of this before," he told DW, referring to tariffs imposed on European steel and aluminum during Trump's first term in office, which were quickly lifted once the EU responded by slapping tariffs on American jeans, whiskey and motorcycles.

"There will be some turbulence," he said, but he predicted that such turbulence would impact American consumers, too, and prompt "discussions" within the US.

"Donald Trump has started something that we have to solve together," he said.

Merz is the favorite to become the next chancellor in Germany's February 23 election, according to polls.

Also on Monday, Merz sought to distance his party from the far-right Alternative for Germany (AfD).

Germany's Merz says he won't tolerate far-right AfD

https://p.dw.com/p/4pzuk
Skip next section Trump says 'great interest' in TikTok app
February 4, 2025

Trump says 'great interest' in TikTok app

US President Donald Trump said there was a lot interest in the TikTok social media app.

"GREAT INTEREST IN TIKTOK! Would be wonderful for China, and all concerned," Trump wrote in a post on his Truth Social platform.

TikTok briefly went dark for US users on January 19 after a deadline passed for the platform's owner, the Chinese technology firm ByteDance, to sell its US operations to a local buyer.

Trump signed an executive order seeking a 75-day extension of the deadline shortly after taking office.

https://p.dw.com/p/4pzsm
Skip next section Judge extends pause on Trump's proposal to freeze federal grants over constitutional issues
February 4, 2025

Judge extends pause on Trump's proposal to freeze federal grants over constitutional issues

A US judge lengthened a pause on the Trump administration's proposal to freeze federal loans, grants and other financial assistance.

US District Judge Loren AliKhan said the policy may have "run roughshod" over Congress's constitutional authority regarding government spending.

AliKhan in Washington wrote that a freeze highlighted in a memo from the White House budget office last week would be "potentially catastrophic" for organizations that rely on federal funding to conduct their missions and provide services.

The judge's ruling meant the plan is now subject to two temporary restraining orders.

https://p.dw.com/p/4pzrX
Skip next section What's the US trade deficit with the EU?
February 4, 2025

What's the US trade deficit with the EU?

A trade deficit is when a country imports more goods and services than it exports.

When it comes to the trade between the United States and the European Union, the US consistently imports more goods from the EU than the bloc imports from the US. 

The 27 nations that make up the EU exported €503 billion ($516 billion) in goods to the US in 2023, with the top three exports medicines, motor vehicles and pharmaceutical products. 

In turn, the EU imported €347 billion worth of goods from the US in 2023, making the US its second biggest trade partner after China.

Import mostly consisted of petroleum oils and crude, medicinal and pharmaceutical products and natural gas. 

This resulted in a US trade deficit of €156 billion to the EU in 2023, according to EU data.

https://p.dw.com/p/4pyy0
Skip next section EU will respond 'firmly' if targeted 'unfairly' by US — von der Leyen
February 4, 2025

EU will respond 'firmly' if targeted 'unfairly' by US — von der Leyen

European leaders warned that US President Donald Trump's threat to impose tariffs on the EU risked sparking a trade war that would harm consumers on both sides of the Atlantic, as well as strengthen China's hand.

European Commission President Ursula von der Leyen said the bloc was aware of "potential challenges" in Transatlantic trade relations.

"When targeted unfairly or arbitrarily, the European Union will respond firmly," von der Leyen said following an informal gathering of EU leaders in Brussels.

She said EU leaders wanted to be pragmatic, engage early, discuss and negotiate with the United States, as a way of averting trade tensions.

"The debate today in the room was about the principle, first of all, be prepared. And I can only say we are prepared," she told a news conference.

European leaders brace for tariffs after Trump threat

EU foreign policy chief Kaja Kallas said if the US and Europe embarked upon a trade war "then the one laughing on the side is China."

Trump said on Sunday the EU was next in line following his decision to impose sweeping tariffs on Mexico, Canada and China, before pausing the measures on Mexico and Canada on Monday.

"It will definitely happen with the European Union. I can tell you that because they've really taken advantage of us," Trump told reporters on Sunday.

"They don't take our cars, they don't take our farm products. They take almost nothing and we take everything from them."

https://p.dw.com/p/4pzr9
Skip next section What exactly are Trump's EU tariff threats?
February 4, 2025

What exactly are Trump's EU tariff threats?

US President Donald Trump has threatened several times in the past months to hit the European Union with tariffs. 

He's been particularly vocal about what he has called unfair trade practices, particularly regarding the automotive and agricultural sectors and the US trade deficit with the EU. 

But what exactly has Trump threatened?

Sunday, February 2

Trump said on Sunday that tariffs would be coming "pretty soon" for the EU but didn't go into more details. 

Friday, 31 January 

He would "absolutely" put "substantial" tariffs on goods coming from EU countries, Trump said, because the bloc had treated the US "so terribly."

"Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely, absolutely," he told reporters in the Oval Office. 

"They don't take our cars, they don't take our farm products, essentially, they don't take almost anything," he said.

And we have a tremendous deficit with the European Union. So, we'll be doing something very substantial with the European Union. We're going to bring the level up to where it should be." 

Friday, 20 December 

The EU "must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas," Trump wrote on his social media platform Truth Social while still president-elect. 

"Otherwise, it is TARIFFS all the way!!!"

https://p.dw.com/p/4pz0o
Skip next section Trump's tariffs spook investors, stoke inflation fears
February 4, 2025

Trump's tariffs spook investors, stoke inflation fears

Global stock markets dived, the dollar rallied, oil prices jumped and world leaders readied tit-for-tat measures. Those were the almost immediate reactions to US President Donald Trump's new tariffs on Canada, Mexico and China, signed into law at the weekend.

Canada and Mexico both announced that the tariffs had been suspended for at least 30 days after talks with Trump.

Trump's latest measures are unprecedented in their scope and scale, targeting three of the United States' largest trading partners simultaneously. Economists have said their impact will likely paralyze economic growth both in the US and around the world.

Read more on the economic impact of Trump's tariffs here.

https://p.dw.com/p/4pz1r
Skip next section Trump confirms Canada tariff pause
February 4, 2025

Trump confirms Canada tariff pause

US President Donald Trump has confirmed the tariffs for Canada will be paused for 30 days after Ottawa agreed to stricter border measures to "finally end the deadly scourge of drugs like Fentanyl."

Trump made the declaration on his Truth Social platform shortly after Canadian Prime Minister Justin Trudeau said the tariffs would be postponed.

"As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that," Trump said. "I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period."

In a separate statement on Monday, Trump also confirmed that he would delay the implementation of tariffs against Mexico after he spoke with Mexican President Claudia Sheinbaum.

https://p.dw.com/p/4pzoK
Skip next section Welcome to DW's coverage of Trump's first days in office
February 4, 2025

Welcome to DW's coverage of Trump's first days in office

Saim Dušan Inayatullah (editor) | John Silk with Reuters, AFP, AP, dpa | Roshni Majumdar
US President Donald Trump signs executive orders in the Oval Office at the White House in Washington DC, US, January 30, 2025
Trump began his second term as US president with a flurry of executive orders and foreign policy decisions Image: Elizabeth Frantz/REUTERS

Trump's early forays into foreign policy at the beginning of his second term in the White House are already sparking tensions with Washington's key allies.

EU leaders have made efforts to form a united front in the face of Trump's tariff threats against them, with European Commission President Ursula von der Leyen promising to respond "firmly" if the bloc is targeted "unfairly."

Meanwhile, Canada and Mexico announced that tariffs had been paused after talks with Trump. The two North American countries had previously threatened retaliatory measures if the levies were to be implemented.

The US president is also expected to meet with his Israeli counterpart, Benjamin Netanyahu, following the ceasefire agreement in Gaza that has been seen as the result of pressure from Trump that came ahead of his inauguration.

Follow DW for the latest.

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