Donald Trump Tariffs Live Updates: Trade war begins as China hits back at Trump, slaps tariffs on US goods

Beijing accused the United States Wednesday of "suppression" after its postal service said it was suspending parcels from China and Hong Kong, a move that could hit e-commerce giants Temu and Shein.
Tensions between the US and China have soared in recent days as the world's two largest economies slapped a volley of tariffs on each others' imports, hitting hundreds of billions of dollars in trade.

On Tuesday, the US Postal Service (USPS) also scrapped a duty-free exemption for low-value packages.

The "de minimis" exemption allows goods valued at $800 or below to enter the United States without paying duties or certain taxes, but it has faced scrutiny due to a surge in shipments in recent years.

In a statement last month, the US Customs and Border Protection agency said exemption shipments were worth over $1.36 billion in 2024, creating challenges for its enforcement of trade laws, health and safety requirements, intellectual property rights, and consumer protection rules.

US officials have pointed to the growth of Chinese-founded online retailers Shein and Temu as a key factor behind this increase -- and Tuesday's halt could delay parcels from both companies from entering the country.

Beijing responded with fury to the move, accusing the US of "politicising trade and economic issues and using them as tools".

Vowing to "take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies", foreign ministry spokesman Lin Jian accused Washington of "unreasonable suppression".

Washington has been looking to tighten the "de minimis" rules, saying the growth in shipments makes it harder to screen goods for security risks.

But the US postal service gave no reason for its pause on Tuesday.

AFP has reached out to Shein and Temu for comment.

Other retailers such as Amazon might also be impacted.

Although earlier it appeared that US parcels could still be sent from Macau, by Wednesday evening the semi-autonomous Chinese city's post office announced that its service was also suspended.

- Tariff standoff -

Tuesday saw Beijing say it would impose levies on imports of US energy, vehicles and equipment in a return salvo minutes after Trump's threatened tariffs on Chinese goods came into effect.

A day earlier, Trump suspended duties on Mexico and Canada for a month after both countries vowed to step up measures to counter flows of the drug fentanyl and the crossing of undocumented migrants into the United States.

Beijing's moves hit roughly $20 billion worth of US goods per year -- roughly 12 percent of total American imports into China, according to calculations by Capital Economics.

But their impact is a far cry from US tariffs announced over the weekend, which will affect some $450 billion worth of goods.

Trump had signalled earlier that the talks with Xi could take place early this week, but addressing reporters at the White House Tuesday afternoon, he said he was in "no rush".

The United States has informed the United Nations that it is freezing funding for a UN-backed mission in Haiti, aimed at combating gangs trying to take control of the capital, Port-au-Prince. This mission, led by Kenyan police, has been struggling with funding and personnel shortages. The US had committed $15 million to the mission, but $13.3 million of that is now frozen, with only $1.7 million spent.

This funding halt comes amid President Donald Trump’s freeze on foreign assistance, impacting US aid programs worldwide. The announcement came just after a military contingent from El Salvador arrived in Haiti, joining over 600 Kenyan officers already deployed. The freeze has surprised mission officials, and it is unclear what impact it will have on the mission's transformation into a UN peacekeeping force.

The mission’s challenges are compounded by escalating gang violence in Port-au-Prince, where gangs already control 85% of the capital. More than 5,600 people were killed in Haiti last year, with over a million displaced due to the violence. The UN has warned that without additional support, gangs could completely overrun the capital.

Concerns over human rights abuses, including sexual violence and child recruitment by gangs, were reiterated in the latest UN report. Experts warn that the situation in Haiti is worsening, and the mission’s effectiveness will be further undermined by the halt in US funding.

Palestinians are set to commemorate the 77th anniversary of their mass expulsion during the 1948 Arab-Israeli war, an event central to their national identity and ongoing struggle. However, the calamity in Gaza today, intensified by President Donald Trump’s proposal to "take control" of Gaza, has brought renewed fears of mass displacement.

The Nakba, which saw over 700,000 Palestinians driven from their homes, remains a core grievance. In Gaza, refugees and their descendants now make up the majority of the population, and many fear a repeat of their tragic history. The current war has already displaced over 1.7 million Palestinians, doubling the number displaced in 1948.

While Israel has long rejected the Palestinian right of return, citing security concerns, the international community has largely opposed any large-scale expulsion. Still, with Gaza devastated and no clear path to rebuilding, Palestinians face a future in which living conditions may force them to leave, not through forced expulsion but through unbearable circumstances. The slow and painful exodus is feared to be the next phase of an ongoing Nakba.

China on Wednesday opposed the "forced transfer" of Palestinians from Gaza after US President Donald Trump stated his intention to "take control" of the territory.

"China has always maintained that Palestinians should govern themselves, which is a fundamental principle of post-war Gaza governance. We oppose the forced transfer of Gaza residents," foreign ministry spokesperson Lin Jian said at a regular press conference.

US President Donald Trump will sign an executive order on Wednesday barring individuals who were biologically assigned male at birth from competing in women’s and girls’ sports. The order, set to be signed on National Girls and Women in Sports Day, is part of Trump’s broader push to restrict transgender rights.

Last month, Trump issued a sweeping order defining sex strictly as male or female for official documents and federal policies. His campaign promise to "keep men out of women’s sports" resonated with many voters, with AP VoteCast showing that over half of those surveyed felt transgender rights had gone too far.

US President Donald Trump’s press conference with Israeli Prime Minister Benjamin Netanyahu turned into a chaotic scene on Tuesday as he announced that the United States should take control of Gaza.More than 100 journalists had packed into the East Room of the White House, some standing in the aisles due to a lack of seats. When Trump made his announcement, reporters immediately reacted, pushing forward, raising their hands, and shouting questions, Daily Mail reported.The room turned into a frenzy. Reporters, many of whom were already squeezed against the walls, tried to get Trump’s attention.Hands shot up instantly. Reporters pushed forward, voices overlapping as they shouted questions. Those in the aisles spilled toward the seated journalists, forming a dense crowd all trying to get the president’s attention.Some waved frantically, while others jumped up and down, the Daily Mail report said. One journalist called the moment “nuts.”Trump, standing at a podium with the Israeli and American flags behind him, watched the reaction from a distance. He continued to take questions, deciding himself who to call on instead of allowing Netanyahu to do so.

US President Donald Trump's suggestion that Palestinians should leave Gaza has sparked strong reactions across the Middle East, still reeling from the Israel-Hamas war.

Qatar-based news outlet Al Jazeera, which has played a key role in covering ceasefire negotiations, described Trump’s remarks as a “shock announcement.”

Hamas has strongly rejected the idea, accusing Trump of rewarding Israel instead of holding it accountable.

"Instead of punishing the Zionist occupation for genocide and displacement, it is being rewarded," Hamas said in a statement. "We reject Trump's claim that Gaza residents have no choice but to leave. This will only create chaos and tension in the region."

President Donald Trump has proposed that the United States "take over" and "own" the Gaza Strip, arguing that the region should be completely rebuilt and transformed into an economic hub.

When Donald Trump started the biggest trade war since the 1930s in his first term, his impulsive combination of threats and import taxes on U.S. trading partners created chaos, generated drama -- and drew criticism from mainstream economists who favor free trade.

But it didn’t do much damage to the U.S. economy. Or much good. Inflation stayed under control. The economy kept growing as it had before. And America’s massive trade deficits, the main target of Trump’s ire, proved resistant to his rhetoric and his tariffs: Already big, they got bigger.

The trade war sequel that Trump has planned for his second term – if it unfolds the way he's described it – would likely be a different matter altogether. Trump appears to have grander ambitions and is operating in a far more treacherous economic environment this time.

His plans to plaster tariffs of 25% on goods from Mexico and Canada and 10% on China – and to follow those up by targeting the European Union – would threaten growth, and push up prices in the United States, undermining his campaign pledge to eliminate the inflation that plagued President Joe Biden.

United States President Donald Trump is set to speak with Chinese President Xi Jinping, Al Jazeera reported on Tuesday, citing Trump's top trade adviser, Peter Navarro.

White House press secretary Karoline Leavitt did not provide a specific timeline for the Trump-Xi call but said it would happen "soon", as reported by Al Jazeera.

Meanwhile, China has announced retaliatory tariffs on US goods in response to Washington's latest trade measures. Beijing will impose a 15 per cent tariff on imports of coal and liquefied natural gas (LNG) from the US, following the American government's decision to impose 10 per cent tariffs on Chinese goods, Al Jazeera reported.

China's Ministry of Finance also said on Tuesday that a 10 per cent tariff would be applied to US imports, including crude oil, agricultural machinery, large-displacement vehicles and pick-up trucks, as reported by Al Jazeera.

While US President Donald Trump unleashes trade wars and tariffs, the system for settling such disputes within the World Trade Organization has been paralysed for years -- by the United States.

Having returned to the White House, Trump has imposed a 10 percent tariff hike on Chinese goods, with Beijing immediately retaliating with tariffs on US imports of energy, cars and machinery parts.

China said Tuesday that it would file a complaint with the WTO over the "malicious" US levies -- but that move is likely to hit a dead end, unless Beijing and Washington resolve the spat of their own accord.

China countered President Donald Trump’s across-the-board tariffs on Chinese products with tariffs on select U.S. imports. It will also launch an antitrust investigation into Google and other trade measures.

The U.S., Canada and Mexico have all agreed to pause planned tariffs for at least a month as negotiations over border security continue.

Mexico began Tuesday the 10,000-strong border troop deployment it had promised US President Donald Trump in exchange for delaying a 25-percent tariff on exported goods, President Claudia Sheinbaum said.
"The deployment has already started," she told reporters a day after announcing a last-minute deal with Trump to tighten measures against illegal migration and cross-border smuggling of the drug fentanyl.

President Donald Trump has long been clear that he would use tariffs as an economic sledgehammer against nations that refuse to bend to his demands.

He has been far less clear about what, exactly, those demands are -- a strategy that allows him to declare victory when he sees fit.

Trump has said he wants Canada and Mexico to stop the flow of migrants at the border and curtail shipments of fentanyl. But at least publicly, he has offered only vague benchmarks to gauge their cooperation. Asked on Monday whether there was anything Prime Minister Justin Trudeau of Canada could offer to avoid tariffs, Trump said, "I don't know."

"We have big deficits with Canada like we do with all countries," Trump said from the Oval Office. "I'd like to see Canada become our 51st state."

Japan's Prime Minister Shigeru Ishiba will meet President Donald Trump on a visit to the United States this week, top government spokesman Yoshimasa Hayashi said on Tuesday.
"If circumstances permit, he will visit the United States from February 6-8 and hold (his) first face-to-face Japan-US summit meeting with President Trump in Washington DC," Hayashi said.

For now, analysts believe the latest measures won't bite too hard.

"The 10 percent tariff is not a big shock to China's economy," Zhang Zhiwei at Pinpoint Asset Management said in a note.

"It's unlikely to change the market expectation on China's macro outlook this year, which already factored in higher tariffs from the US," he added.

And that could allow China to keep its powder dry in the event Trump's first wave of tariffs are the prelude to a bigger showdown.

The US president has ordered an in-depth review of Chinese trade practices, the results of which are due by April 1.

That could serve as a "catalyst for more tariffs", said Murphy Cruise, pushing Beijing to shift tactics.

"This strategy of no retaliation may change if the US imposes additional significant tariffs later on," UBS economists said.

"In such a case, we think China may retaliate on a targeted basis and in a restrained manner, imposing tariffs on selected agricultural products, auto parts, energy," they said.

Experts added that China could also let the value of its currency devalue, increasing the competitiveness of its exports. (AFP)

The United States late on Monday paused its planned tariffs on Canada and Mexico for 30 days as both countries take measures to address border security and drug trafficking concerns raised by US President Donald Trump. The decision follows negotiations between the leaders of the three countries and agreements on new security measures.

Trump announced the temporary suspension, saying, “I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured. FAIRNESS FOR ALL!”

US President Donald Trump agreed on Monday to pause his planned tariffs on Mexico and Canada for 30 days. The decision comes as both countries took steps to address his concerns about border security and drug trafficking.

The pause follows days of uncertainty that raised fears of a trade war in North America. Such a conflict could have slowed economic growth, increased prices, and strained key trade relationships.

China lashed out at the US over tariffs imposed by President Donald Trump, saying Beijing "may be forced to take countermeasures" and stressed that there is "no winner in a trade war".

"We are firmly opposed to this unwarranted increase and we do believe that this is in violation of the WTO (World Trade Organisation) rules," China's Permanent Representative to the UN Ambassador Fu Cong said.

Fu was addressing a press conference here Monday as China assumed the rotating presidency of the 15-nation UN Security Council for the month of February.

In response to a question about the Trump administration imposing 10 per cent tariffs on Chinese goods coming into the US, he said China is filing a complaint at the WTO and Beijing "may be forced to take countermeasures."

On Saturday, the White House announced that Trump was implementing a 25 per cent additional tariff on imports from Canada and Mexico and a 10 per cent additional tariff on imports from China.

Beijing announced on Tuesday that it has lodged a complaint with the World Trade Organization (WTO) against the United States over increased tariffs on Chinese goods.

The Chinese commerce ministry stated that the move aims to "defend its legitimate rights and interests," condemning the US measures as "malicious" and in violation of global trade rules.

The dispute escalates tensions between the two economic giants, as China seeks WTO intervention against what it views as unfair trade practices.

President Donald Trump on Monday agreed to a 30-day suspension of his tariff threats against Mexico and Canada as the United States' two largest trading partners took measures to address his concerns regarding border security and drug trafficking.

China said Tuesday it would impose tariffs of 15 percent on imports of coal and liquefied natural gas from the United States, after Washington slapped ten percent levies on Chinese goods.

"A 15 percent tariff will be imposed on coal and liquefied natural gas (LNG)," Beijing's commerce ministry said, adding the tariffs come into force next Monday.

China said Tuesday it would slap 10 percent tariffs on imports from the US of crude oil, agricultural machinery, large-displacement vehicles and pickup trucks.

The move comes after Washington announced 10 percent levies on Chinese imports, which Beijing's commerce ministry said "seriously violates World Trade Organization rules".

US President Donald Trump confirmed Monday he would delay the start of tariffs on Canada for 30 days, saying he was "very pleased" it had agreed to tighten border measures against the flow of the drug fentanyl.

"Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl," Trump said on his Truth Social network after a similar announcement by Prime Minister Justin Trudeau.

With the European Union possibly next to be hit by US import tariffs, here are the sectors that are most exposed.

From Tuesday, the United States will impose 25 percent import tariffs on goods from Canada, with Trump postponing a similar hike for Mexico for one month.

Both countries have enjoyed free access to the US market under a trade deal that Donald Trump negotiated in his first term as president.

An additional levy of 10 percent will be imposed on goods from China.

On Sunday, Trump suggested that the European Union could be the next target for tariffs.

US President Donald Trump and Mexican President Claudia Sheinbaum said Monday that their planned tariffs were on hold for a month to give time for further negotiations. The statement was confirmed by the White House.

Trump’s tariffs against Canada and China are still slated to go into effect on Tuesday.

Wall Street stocks slid on Monday, mirroring global market losses after US President Donald Trump announced tariffs on Canada, Mexico, and China.

Although Trump later revised his stance, postponing tariffs on Mexico for 30 days following talks with his Mexican counterpart, the market reaction remained negative. The Dow Jones Industrial Average dipped 0.3% to 44,421.91, while the S&P 500 dropped 0.8% to 5,994.57. The Nasdaq Composite, hit hardest, fell 1.2% to 19,391.96.

"Tariffs are seen as a cost that will likely push prices higher and growth lower," said Jack Ablin of Cresset Capital, noting that Trump’s broader tariff threats have fueled market uncertainty. "The market is adapting not just to more tariffs, but more headline risk."

Monday’s trading highlighted the uneven impact of tariffs across sectors, with some industries more vulnerable than others to the escalating trade tensions.

Companies in a wide range of industries saw their stocks come under pressure Monday on Wall Street because of tariff threats from President Donald Trump.

Automakers, technology companies and retailers all fell as the US, Mexico, Canada and China wrangled over tariffs. Trump said over the weekend that 25% tariffs on imports from Canada and Mexico would go into effect Tuesday, though he has given the nations a 30-day reprieve. China still faces 10% tariffs.

China has a range of options to hit back against fresh US tariffs, from retaliatory levies on American goods like car parts and soybeans to restrictions on raw materials crucial for US manufacturing, analysts say.

Over the weekend, US President Donald Trump announced a 10% tariff on Chinese products, further intensifying a trade standoff that began eight years ago during his first term. In response, Beijing warned that a trade war would have “no winners” and vowed countermeasures, though specifics remain unclear.

Trump’s announcement followed reports that Canada and Mexico had secured a deal to delay 25% tariffs on their exports. He also stated that talks with China would likely take place “in the next 24 hours” in an effort to strike an agreement.

With China’s economy grappling with sluggish consumption and slow growth, analysts expect Beijing to hold back immediate retaliation—at least until another wave of tariffs poses a more significant threat.