China Imposes Retaliatory Tariffs and Non-Tariff Measures in Response to Trump Tariffs
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On February 4, 2025, China announced it would impose additional tariffs on certain US imports from February 10, 2025 in retaliation to President Trump's executive order issued under the International Emergency Economic Powers Act (IEEPA) earlier this week to impose 10% ad valorem tariffs on all imports from China. The tariffs include a 15% additional duty on imports of US coal, coke, and liquified natural gas, and a 10% additional duty on imports of US crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks, among others.
In conjunction with these tariff measures, China filed a formal complaint with the World Trade Organization (WTO) dispute settlement body against the Trump tariffs and announced other non-tariff retaliatory actions, including export controls on five critical minerals, on the same day.
Retaliatory tariff measures
According to Notification No. 1/2025 dated February 4, 2025 of China's State Council Tariff Commission (SCTC),1 China will impose targeted tariffs on certain US imports from February 10, 2025. These include (i) a 15% additional tariff on US imports of anthracite, coal, coke, lignite, and liquified natural gas falling under 8 tariff lines of China's 2025 Tariff Schedule (see Annex 1 of the SCTC notification); and (ii) a 10% additional tariff on US imports of crude oil, various types of agricultural machinery, tractors, large-displacement vehicles and pickup trucks, electric wagons, agricultural trailers, and semi-trailers falling under 72 tariff lines (see Annex 2 of the SCTC notification).
The notification specifies that this action is a response to the unilateral tariff measures imposed by the United States on Chinese imports, announced on February 1, 2025. Additionally, the SCTC clarifies in the notification that no exemption or reduction mechanism will apply to these retaliatory tariff measures.
On the same day, the Ministry of Commerce (MOFCOM) also disclosed in its daily press briefing that a formal complaint against Trump’s 10% tariffs on China has been filed with the WTO dispute settlement body.2
Non-tariff actions
According to MOFCOM Notification No. 10/2025 dated February 4, 2025,3 China has announced immediate export controls on products related to five critical minerals. The controlled items include various products of tungsten, tellurium, bismuth, molybdenum, and indium, as well as the relevant technologies and information related to processing specifications, parameters, and technical procedures. The measure entered into force on February 4, 2025.
The products subject to these export control measures are considered key materials in industrial and defense applications (e.g., tungsten and molybdenum), solar cell manufacturing (e.g., tellurium), and the semiconductor industry (e.g., indium). MOFCOM justified these measures in its notification, stating that they are intended to "safeguard national security and interests and fulfill international obligations on non-proliferation."
China also announced several other actions against US companies on February 4, 2025, including immediately adding PVH Group and Illumina, Inc. to the Unreliable Entity List (UEL)4 and initiating an anti-monopoly investigation against Google.5
Although the Chinese government has not explicitly linked these actions to the trade dispute with the United States, their timing may signify the Chinese government's tendency to leverage non-tariff measures or even non-trade mechanisms as part of its retaliation efforts.
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We provide below a list of partners and senior attorneys within the Global International Trade Practice of White & Case. Please contact any of them with questions about this report or other trade issues.
- Washington, DC: David Bond (Partner); Ryan Brady (Partner); Cristina Brayton-Lewis (Partner); Jay Campbell (Partner); Nicole Erb (Partner); Farhad Jalinous (Partner); David Lim (Partner); Gregory Spak (Partner)
- Mexico: Francisco de Rosenzweig (Partner); Carlos Vejar (Local Partner)
- Brussels: James Killick (Partner); Sara Nordin (Partner)
- Geneva: Jasper Wauters (Partner); Charles Julien (Partner)
- London: Chris Thomas (Counsel); Ed Pearson (Senior Associate)
- Paris: Orion Berg (Partner)
- Tokyo: William Moran (Partner)
- Dubai: Marcus Sohlberg (Counsel)
1 SCTC Notification No. 1/2025 dated February 4, 2025, accessible here (in Chinese).
2 The Ministry of Commerce spokesperson answered questions from reporters regarding China's lawsuit against the US for additional tariffs in the WTO,” Ministry of Commerce, February 4, 2025, accessible here (in Chinese).
3 MOFCOM Notification No. 10/2025 dated February 4, 2025, accessible here (in Chinese).
4 “Announcement of the Working Mechanism of the Unreliable Entity List on the inclusion of PVH Group and Illumina Inc. of the United States in the Unreliable Entity List,” Ministry of Commerce, February 4, 2025, accessible here (in Chinese).
5 “Google is suspected of violating the Anti-Monopoly Law. The State Administration for Market Regulation has decided to initiate an investigation in accordance with the law.” State Administration for Market Regulation, February 4, 2025, accessible here (in Chinese).
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