Key Points
- China has sanctioned five U.S. units of a South Korean shipping company. The move is a retaliation for recent U.S. trade actions and tariff threats.
- This is the latest in a series of tit-for-tat moves in the escalating U.S.-China trade war.
- The sanctions have sent a new wave of concern through global stock markets.
- A major tariff truce between the two countries is set to expire on November 10.
China has sanctioned five U.S. units of a South Korean shipping company, the latest shot in its escalating trade war with the United States. The move, which comes just a day after President Trump hinted at a potential de-escalation, has sent a new wave of jitters through global financial markets.
The sanctions against Hanwha Ocean Co. are a direct retaliation for recent U.S. actions. The trade fight ramped up last week when President Trump threatened to slap a new 100% tariff on Chinese goods in response to Beijing’s own plan to restrict exports of critical rare earth minerals.
This is just the latest in a series of tit-for-tat moves. China has also recently imposed new port fees on U.S. ships, launched an antitrust investigation into U.S. chip giant Qualcomm, and halted all purchases of U.S. soybeans.
U.S. Treasury Secretary Scott Bessent slammed China for the latest move, saying, “This is a sign of how weak their economy is, and they want to pull everybody else down with them.”
For now, a set of even higher tariffs between the two countries—some as high as 145%—is on hold until November 10 as the two sides continue to negotiate a broader trade deal. But this latest round of escalation is making it increasingly difficult to see a clear path to a resolution.
