China Responds To Trump In Kind, Imposes 15% Tariff On Coal, LNG Imports From US

China has announced an investigation into Google and imposed new tariffs on a range of US products shortly after President Donald Trump introduced a 10% tariff on goods from Beijing, reigniting a trade war between the world's two largest economies.

According to a statement from the State Administration for Market Regulation on Tuesday, China will investigate the US tech giant for alleged anti-trust violations.

Beijing also unveiled 15% tariffs on coal and liquefied natural gas, and 10% tariffs on oil and agricultural equipment from the US.

The new measures announced by China include:

- Export control on tungsten-related materials
- Adding PVH Corp., the owner of Calvin Klein, and Illumina Inc. to an unreliable entity list

The offshore yuan continued to lose value in the afternoon as the US-China trade dispute deepened, with Beijing implementing 10% tariffs on some American goods. The currency dropped 0.3% to 7.3340 offshore, as its trading was halted in the onshore market due to the Lunar New Year holiday.

China's proxies also saw a decline, with the Australian dollar and New Zealand dollar falling by at least 0.8%.

Over the weekend, the US President ordered a blanket levy on Chinese exports to take effect after midnight on Tuesday in the US, accusing Beijing of failing to curb the flow of illegal drugs.

The orders included retaliation clauses that would raise tariffs if either country responded similarly.