WASHINGTON, USA -- The United States has officially begun imposing tariffs on Chinese imports, as President Donald Trump's trade policy shifts into full effect.
The move has triggered immediate retaliation from Beijing, escalating tensions between the world's two largest economies.
The tariffs -- a 10% levy on Chinese goods -- went into effect at 12:01 a.m. Eastern Time on Thursday.
In response, China announced a series of countermeasures, including tariffs of up to 15% on U.S. coal, liquefied natural gas (LNG), and automobiles, set to take effect next Monday.
The economic manoeuvring follows a tumultuous few days in which Trump agreed to temporary pauses on tariffs against Mexico and Canada after last-minute negotiations with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
China's Commerce Ministry issued a strongly worded statement, accusing the Trump administration of violating international trade laws and announcing a formal complaint with the World Trade Organization (WTO).
"The United States' unilateral decision to impose tariffs disrupts global trade stability," the ministry said.
"China has no choice but to take necessary countermeasures to protect its interests."
Beijing's new tariffs, set to take effect on Monday, target key American exports, including:
Coal
Liquefied natural gas (LNG)
Automobiles
China also announced a new blacklist of American companies, adding brands such as Calvin Klein and Levi's, signaling a potential shift away from U.S. consumer goods in retaliation for Trump's trade policies.
Speaking from the White House, Trump defended the tariffs as necessary to counter China's "unfair trade practices" and protect American jobs.
He also signed an executive order to explore the creation of a U.S. sovereign wealth fund, which he suggested could be partially funded using revenue from tariffs.
"The money we collect from China should go toward strengthening our economy, investing in American industry, and protecting our financial future," Trump said.
Additionally, Trump hinted at renewed action against TikTok, the Chinese-owned social media app, saying his administration "may use tariff money to buy TikTok and place it under U.S. ownership."
The move would rekindle national security debates that began during his first term when the government attempted to force TikTok to divest from its Chinese parent company, ByteDance.
The 10% tariff on China comes just days after Trump had threatened to impose even steeper tariffs -- 25% -- on all imports from Mexico and Canada as part of his broader strategy to curb migration and drug trafficking.
However, last-minute diplomatic efforts secured temporary exemptions for both countries:
Mexico agreed to increase enforcement of its southern border to stem the flow of migrants into the United States.
Canada agreed to renegotiate its trade agreement with the United States.
Despite the temporary reprieve, Trump warned that tariffs could still be imposed if both governments fail to meet their commitments.
"I'm watching very closely. If they don't deliver, the tariffs go back on. Simple as that," he said.
The announcement of tariffs on China -- and the uncertainty surrounding North American trade -- rattled global financial markets.
With China set to retaliate Monday, and with temporary pauses on tariffs for Mexico and Canada, the coming weeks will be pivotal for U.S. trade relations.
As the situation develops, the world watches to see whether Trump's aggressive trade policies will reshape international commerce -- or ignite a new wave of economic instability.