A tariff tit-for-tat with US is last thing China needs - but Beijing insists it won't be bullied

The latest round of the US-China trade war has kicked off.

The US has imposed a tariff of 10% on all goods from China. This is on top of the 10% that was slapped on last month.

So that's a 20% duty in total since Donald Trump became president.

Last year he promised tariffs of up to 60%, so there could be more to come. Beijing is bracing for it.

China hit back fast. It announced tariffs of between 10% and 15% on US agricultural products including chicken, wheat, corn cotton, sorghum, soybeans, pork, beef, dairy and fruit and vegetables.

Last month China's retaliatory tariffs on the US hit crude oil, liquified natural gas (LNG) and coal. It has also banned and restricted the export of critical minerals from China to the US.

The Chinese government is also expanding its list of US companies that it classifies as "unreliable entities", putting them on an export control list.

The tariff tit-for-tat between the world's two largest economies is gaining momentum.

During round one, China kept its cool and retaliated with targeted and limited tariffs.

Now its response is getting stronger, it has accused the US of "shifting the blame".

The US accuses China of fuelling the American drug crisis by producing the chemicals used to make fentanyl. China says it's an American-made problem.

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All this is happening during one of the most important political and economic weeks in China.

The country's rubber stamp parliament, the National People's Congress, meets in Beijing tomorrow.

It sets the economic direction for China for the year.

It's already struggling with a housing and demographic crisis, youth unemployment, and weak consumer spending.

The last thing Beijing needs is tariffs to deal with as well.

But it also wants to show the world it is a stable and responsible economic partner that won't be bullied by the US.

China's President Xi Jinping and President Trump have not spoken since January.

So as the months slip by, the tariffs grow higher.

(c) Sky News 2025: A tariff tit-for-tat with US is last thing China needs - but Beijing insists it won't be bullied