China unveiled a series of retaliatory measures against the United States on Tuesday, including a new antitrust investigation into Google and fresh tariffs on American imports such as coal, liquefied natural gas (LNG), and crude oil. The State Administration for Market Regulation, China's top watchdog, said it has begun probing Google for alleged violations of the nation's anti-monopoly law. Minutes earlier, U.S. President Donald Trump's recently announced 10% duties on Chinese goods took effect, escalating tensions between the world's two largest economies.

Beijing's move also placed two American firms on its "unreliable entity" list, which can bar companies from investing in China. Among those targeted are PVH Corp-parent company of Calvin Klein and Tommy Hilfiger-and biotechnology firm Illumina. "It said the two companies took what it called 'discriminatory measures against Chinese enterprises' and 'damaged' the legitimate rights and interests of Chinese companies," according to a statement from China's Commerce Ministry.

Google has been caught in an uneasy relationship with Chinese authorities for decades. It initially launched a censored Chinese-language search engine, google.cn, in 2006. By 2009, Google commanded about 36% of the local search market. In 2010, it shut down the mainland search service, citing cyberattacks and censorship demands, and later moved its search infrastructure to Hong Kong. China eventually blocked key Google services under its Great Firewall, making them inaccessible from the mainland.

While Google's revenue from China accounts for roughly 1% of its global sales, it maintains offices in Beijing, Shanghai, and Shenzhen to handle advertising, engineering, and cloud services. The American tech giant declined immediate comment on the antitrust probe. "Now, this time, Google is put on the chopping board," said John Gong, a professor of economics at the University of International Business and Economics. "But I think it's still an investigation, right? It hasn't reached a decision yet. I think it's very much negotiable."

Some experts, including Gong, suspect the probe may focus on Google's Android operating system, used by most non-Apple smartphones. "Virtually all smartphone brands apart from Apple and Huawei would have to pay licensing fees to Google to use the Android system on their devices," Gong noted. Meanwhile, Huawei itself developed a homegrown operating system, HarmonyOS, after U.S. export restrictions cut off its access to Google services.

China's new measures also include a 10% tariff on American farm equipment, potentially impacting producers like Caterpillar, Deere & Co., and AGCO. Additionally, some niche vehicles shipped from the United States-such as Tesla's Cybertruck-could be classified under higher tariff categories. "These moves are warnings that China intends to harm U.S. interests if need be, but still give China the option to back down," stated Capital Economics. "The tariffs could be postponed or cancelled before they come into effect... The probe against Google could conclude without any penalties."

Beyond tariffs, China has grown more aggressive in restricting tech ties. In December, Beijing said it opened an investigation into Nvidia for potential antitrust violations, widely seen as retaliation for U.S. chip curbs. Intel likewise faced recent scrutiny when an influential Chinese industry group called for a security review of its products.