China has announced tariffs on select American goods and that it will impose export controls on certain critical minerals on Tuesday amidst an escalating trade war with the U.S. that threatens to disrupt supply chains and cost U.S. companies more to import and export goods.
NJBIA and the National Association of Manufacturers are seeking input from New Jersey business owners on how the new tariffs on Chinese goods – as well as the temporarily paused tariffs on goods from Canada and Mexico – will directly impact their business operations.
New Jersey companies are asked to take a brief online survey by Friday.
Although President Donald Trump on Monday agreed to a 30-day postponement of the 25% tariffs he had promised to impose on imports from Canada and Mexico, the 10% tariff on Chinese goods went into effect Tuesday as scheduled. This prompted China’s announcement about 15% retaliatory tariffs and other economic measures.
China’s retaliatory tariffs, which take effect on Monday, Feb. 10, will impose a 15% tax on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars and trucks imported from the United States.
On Tuesday, China also announced export restrictions, effective immediately, on several minerals and related technologies that U.S. companies use in industrial and defense applications, clean energy and advanced technology manufacturing. These critical minerals include tungsten, tellurium, bismuth, molybdenum and indium.
According to the Associated Press, China also announced it was launching an antitrust investigation into Google and that it was placing two American companies on its “unreliable entities” list: PVH Group, which owns Calvin Klein and Tommy Hilfiger, as well as Illumina, a biotech company with offices in China. Companies on this list could be banned from importing or exporting from China or making investments in China.
Trump told reporters during remarks in the Oval Office on Tuesday that he was in “no rush” to talk to China’s leader, Xi Jinping, about deescalating the situation.
