China promptly responded on Tuesday to the latest U.S. tariffs, imposing import duty hikes of 10% to 15% on a variety of American agricultural and food products. Additionally, Beijing placed twenty-five U.S. companies under export and investment restrictions as part of its countermeasures.
The extra 10% duty U.S. President Donald Trump threatened China with last week entered into force at 0501 GMT on March 4, resulting in a cumulative 20% tariff in response to what the White House considers Chinese inaction over drug flows.
The tariff represents an additional hike to preexisting levies on thousands of Chinese goods.
The U.S. has argued that China supplies chemicals used in fentanyl production. China has denied any wrongdoing.
Beijing will impose an additional 15% tariff on U.S. chicken, wheat, corn and cotton and an extra 10% levy on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports from March. 10, the finance ministry announced in a statement.
“The U.S.’s unilateral tariffs measures seriously violate World Trade Organization rules and undermine the basis for economic and trade cooperation between China and the U.S.,” China’s commerce ministry said in a separate statement.
“China will firmly safeguard its legitimate rights and interests,” the statement added.
Trump Gaslights Tariff War
U.S. President Donald Trump’s 25% tariffs on imports from Mexico and Canada took effect on Tuesday, alongside a duty increase on Chinese goods to 20%, igniting fresh trade conflicts with America’s top three trading partners.
China is preparing countermeasures against fresh U.S. import tariffs set to take effect on Tuesday, China’s State-backed Global Times reported, with American agricultural exports likely in Beijing’s crosshairs.
China Targets US Agricultural Products
After Trump threatened China with the extra 10% duty, resulting in a cumulative 20% tariff, China has hit back.
“China is studying and formulating relevant countermeasures in response to the U.S. threat of imposing an additional 10% tariff on Chinese products under the pretext of fentanyl,” Global Times reported on Monday, citing an anonymous source.
“The countermeasures will likely include both tariffs and a series of non-tariff measures, and U.S. agricultural and food products will most likely be listed,” the report added.
The U.S. has long been vulnerable to China using its agricultural exports as a punching bag in times of trade tensions.
China remains the biggest market for U.S. agriculture products despite a decline in imports since 2018 after Beijing slapped tariffs of up to 25% on soybeans, beef, pork, wheat, corn and sorghum in retaliation for duties on Chinese goods imposed by Trump.
(With inputs from Reuters)
