China has initiated a significant response to recent U.S. tariffs by launching an investigation into Google for alleged antitrust violations and imposing new tariffs on various American products. This move comes shortly after President Donald Trump announced a 10% tariff on Chinese imports, which is part of a broader strategy to address what he describes as China's failure to control the flow of illegal drugs into the U.S.

China's State Administration for Market Regulation has formally begun an investigation into Google, citing suspicions of violations of the country's Anti-Monopoly Law. This investigation was announced just moments after the U.S. tariffs took effect, indicating a retaliatory nature to the timing.

In addition to the probe, China will impose a 15% tariff on imports of coal and liquefied natural gas from the U.S., effective February 10. Furthermore, a 10% tariff will be applied to crude oil, agricultural machinery, and vehicles with large engines.

The Chinese government also plans to add two U.S. companies—PVH Corp. (owner of Calvin Klein) and Illumina Inc.—to its "unreliable entity list," which targets firms that allegedly disrupt normal trade practices with Chinese companies.

The offshore yuan has experienced a decline amid these developments, dropping 0.3% as the trade tensions escalate. Additionally, currencies like the Australian and New Zealand dollars have also fallen in response to the evolving trade situation.

This escalation in trade hostilities marks a significant moment in U.S.-China relations, with both nations taking measures that could further complicate their economic interactions and impact global supply chains.

ANI