China responded swiftly to the implementation of new U.S. tariffs on Tuesday by announcing a series of measures targeting American businesses, including Google, PVH Corp (owner of Calvin Klein and Tommy Hilfiger), and biotechnology firm Illumina. These actions mark a significant escalation in the ongoing trade dispute between the world’s two largest economies.
Beijing’s countermeasures included tariffs on U.S. goods such as coal, oil, and certain automobiles, a direct response to President Trump’s latest tariff increases on Chinese products. Simultaneously, China’s State Administration for Market Regulation launched an anti-monopoly investigation into Google, alleging violations of Chinese law. Details regarding the specific nature of the alleged violations remain undisclosed. While Google’s presence in China is limited, with its search engine blocked and revenue from the country representing a small fraction of its global sales, the company maintains relationships with Chinese advertisers and previously operated a small AI center in the country.
In a separate action, China’s Ministry of Commerce added PVH Corp and Illumina to its “unreliable entity” list, citing “discriminatory measures” against Chinese enterprises and damage to their rights and interests. Companies placed on this blacklist face potential penalties ranging from fines to trade freezes and revocation of work permits for foreign personnel.
PVH expressed surprise and disappointment at the decision, asserting its compliance with all applicable laws and regulations. The company pledged to continue engaging with Chinese authorities to seek a resolution. Illumina did not immediately comment on the matter. Premarket trading in the U.S. saw shares of both PVH and Illumina decline by approximately 4%, while Google’s parent company, Alphabet, experienced a 1% increase. PVH had previously faced scrutiny from Chinese regulators regarding its conduct related to the Xinjiang region.
These retaliatory measures underscore the escalating tensions in the U.S.-China trade relationship. Analysts suggest that these actions serve as a warning of China’s willingness to inflict economic harm on U.S. interests, while still leaving room for potential de-escalation. The ongoing trade dispute continues to create uncertainty for businesses operating in both countries and raises concerns about the broader global economic outlook. As both sides engage in tit-for-tat actions, the path forward remains uncertain. The situation warrants close monitoring as further developments unfold.
