US-China trade war escalates: China hits back with tariffs on US goods, Google probe after Trump’s threat

China announced an investigation into Google and imposed new tariffs on a range of US products moments after President Donald Trump slapped a 10% tariff on goods from Beijing, reigniting a trade war between the word’s largest economies.

China on Tuesday announced an investigation into Google and imposed new tariffs on a range of US products moments after President Donald Trump slapped a 10% tariff on goods from Beijing, reigniting a trade war between the word’s largest economies.

Beijing has said it will impose retaliatory tariffs on a raft of US products. The counter measures include a 15% tax on coal and liquefied natural gas imports from the US.

Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.

The announcement came shortly after Donald Trump's new 10% tariffs on China came into effect.

Trump’s additional 10% tariff across all Chinese imports into the US came into effect at 12:01 am ET on Tuesday (05:01 GMT). Within minutes, China’s Finance Ministry said it would impose levies of 15% for US coal and LNG and 10% for crude oil, farm equipment and some autos. The new tariffs on US exports will start on 10 February, the ministry said, the Guardian reported.

Separately, China’s Commerce Ministry and its Customs Administration said the country is imposing export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items to “safeguard national security interests”.

Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.

But there was no such reprieve for China, and a White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week.