Beijing imposes retaliatory tariffs on US goods; Mexico, Canada suspend tariffs after deal with Trump
Beijing [China], February 5: US President Donald Trump is set to speak with Chinese President Xi Jinping, as reported by Al Jazeera, citing Trump’s top trade adviser, Peter Navarro.
White House Press Secretary Karoline Leavitt did not specify a timeline for the call but confirmed it would happen “soon.” The announcement comes amid rising trade tensions between the two largest economies, with Beijing unveiling retaliatory tariffs on US goods in response to Washington’s latest trade measures.
China Strikes Back: New Tariffs on US Coal, LNG, and Crude Oil
China’s Ministry of Finance announced that a 15% tariff will be imposed on US coal and liquefied natural gas (LNG) imports, following Washington’s 10% tariffs on Chinese goods. Additionally, Beijing will implement a 10% tariff on US crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks.
China justified the move, stating:
“Washington’s decision seriously violates WTO rules, does nothing to resolve its own problems, and disrupts normal economic and trade cooperation between China and the United States.”
The tariffs will take effect on February 10, a decision that analysts believe leaves room for last-minute diplomacy between Trump and Xi.
“China’s retaliatory tariffs are a calibrated response rather than an outright escalation,” said Julien Chaisse, an international trade law expert at City University of Hong Kong.
“The February 10 start date allows time for potential talks, leaving room for adjustments, exemptions, or reciprocal gestures that could prevent further escalation.”
However, he warned that Trump’s interpretation of Beijing’s move will determine the outcome:
“If Trump sees this as a direct challenge, his administration could respond with additional trade restrictions, intensifying the conflict.”
Mexico and Canada Suspend US Tariffs After Border Security Agreement
Meanwhile, Mexico’s President Claudia Sheinbaum and Canada’s Prime Minister Justin Trudeau have suspended US tariffs for 30 days after striking a deal with Trump.
✔ Mexico and Canada agreed to deploy border forces to curb drug trafficking and illegal migration.
✔ Trump’s trade adviser, Peter Navarro, said Mexico has been “very cooperative” in combating fentanyl smuggling into the US.
✔ Navarro criticized Canada, claiming it has become a major entry point for drug shipments and individuals on the US terrorism watchlist.
El Salvador Offers to Take US Convicts for a Fee
Adding to the geopolitical developments, El Salvador’s President Nayib Bukele proposed a controversial prison outsourcing deal with the US.
“We have offered the United States of America the opportunity to outsource part of its prison system,” Bukele wrote on X (formerly Twitter).
“We are willing to take in only convicted criminals (including convicted U.S. citizens) into our mega-prison (CECOT) in exchange for a fee. The fee would be relatively low for the U.S. but significant for us, making our entire prison system sustainable.”
The offer came hours after US Secretary of State Marco Rubio revealed discussions on the proposal during his visit to El Salvador.
What’s Next?
✔ Trump’s call with Xi Jinping will be closely watched to determine whether the US-China trade war de-escalates or worsens.
✔ If tensions rise, Trump could impose harsher trade restrictions on China.
✔ Canada’s and Mexico’s 30-day tariff suspension provides a temporary relief but hinges on continued cooperation.
✔ El Salvador’s prison outsourcing deal could spark human rights and legal debates in the US.