China has imposed new tariffs on US imports in response to President Donald Trump’s fresh 10% duty on all Chinese goods, reigniting tensions between the world’s two largest economies.

The US tariffs took effect at 12:01 am ET on Tuesday (0501 GMT), prompting an immediate countermeasure from China’s Finance Ministry, which announced 15% tariffs on US coal and LNG and 10% tariffs on crude oil, farm equipment, and some autos. These levies will take effect on February 10.

Additionally, China’s Commerce Ministry and Customs Administration introduced export controls on critical minerals, including tungsten, tellurium, ruthenium, and molybdenum, citing national security concerns.

Meanwhile, Trump postponed a planned 25% tariff on Mexico and Canada for 30 days after securing agreements on border and crime enforcement. However, China was granted no such reprieve, and a White House spokesperson confirmed that Trump would not speak with Chinese President Xi Jinping until later in the week.

The renewed trade war echoes the 2018 US-China tariff conflict, which disrupted global supply chains and weakened the world economy. In 2020, China agreed to purchase $200 billion in US goods annually to resolve the standoff. Yet, the COVID-19 pandemic derailed the agreement, and China’s trade deficit with the US widened to $361 billion, according to recent customs data.

Oxford Economics warned that the situation is in its early stages, predicting further tariff escalations and lowering its China growth forecast.

Trump linked his tariff hike to Beijing’s failure to stem fentanyl exports to the United States, stating: “If China doesn’t stop sending fentanyl, the tariffs will go substantially higher.”

China dismissed the fentanyl accusations, vowed to challenge the tariffs at the World Trade Organization (WTO), and signaled countermeasures—while also keeping the door open for further negotiations.