China fires back as Trump tariffs start trade war

China put targeted tariffs on U.S. coal, natural gas, and other imports on Tuesday, as President Donald Trump’s 10% tariff on all Chinese goods took effect. 

Officials in Beijing also tightened controls on exports of critical minerals and launched an anti-monopoly probe into Google.

Trump had warned he would target his country’s three largest trading partners, Canada, Mexico, and China, with aggressive duties. 

However, Canada and Mexico dodged immediate penalties when they struck deals with Trump on border security and fentanyl, which postponed planned 25% tariffs on their products for 30 days.

Despite Trump’s pledge to speak with Chinese President Xi Jinping, no call took place before Trump’s tariffs started. 

Trump accuses China of failing to curb fentanyl shipments, using tariffs as leverage to push Beijing into stricter action.

Markets in Asia rebounded slightly on Tuesday, helped by relief that Canada and Mexico avoided the harshest penalties. 

But European trading remained shaky, and U.S. futures pointed lower, as investors gauged the risks of a full-blown trade war. 

China insists that trade disputes should be settled through dialogue, but said it will not stand down if further tariffs are imposed.