China Strikes Back: Tariffs & Tensions in US-China Trade War

China has applied targeted tariffs on U.S. imports, including energy and technology, in response to U.S. tariffs on Chinese goods. Potential sanctions against companies like Google are also under consideration. Meanwhile, diplomatic engagements are anticipated to defuse the trade tension between the world’s largest economies.

In a strategic response to U.S. tariffs on Chinese imports, China announced targeted levies on Tuesday, affecting a broad range of American goods, from coal to technology. Significant U.S. companies like Google have been put on notice for possible sanctions, escalating tensions between the two countries.

President Donald Trump and Chinese President Xi Jinping have yet to engage in crucial talks to address the ongoing trade dispute. Investors remain hopeful for a temporary reprieve, observing recent negotiations where Trump paused tariffs on Mexico and Canada, boosting market confidence.

China's tariffs, reportedly lower in scale compared to the U.S. measures, indicate a willingness to negotiate. However, the situation remains volatile, with potential future tariffs likely, as the trade tensions are still in the preliminary stages, according to economic forecasts.

(With inputs from agencies.)