China announced on Tuesday that it will impose additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy, and beef. These tariffs are set to take effect from March 10, with goods already in transit exempt until April 12. This move comes in response to U.S. President Donald Trump's decision to raise tariffs on Chinese imports to 20% and impose 25% tariffs on imports from Canada and Mexico.
The Commerce Ministry specified that imports of U.S. chicken, wheat, corn, and cotton will face an extra 15% tariff, while sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products will see a 10% increase in tariffs. Additionally, Beijing added 10 more U.S. firms to its unreliable entity list, restricting their business activities with China.
Furthermore, China included 15 U.S. companies on its export control list, preventing the export of dual-use items to them. Despite the sweeping tariffs on American farm products, China refrained from imposing higher tariffs across the board, showing restraint in the ongoing trade tensions.
In 2021-22, the U.S. recorded record export values to China for various farm products. However, China has been diversifying its sources for farm imports, purchasing more soybeans from Brazil and Argentina. The Chinese government and companies are prepared to resist unjust trade pressure from the U.S. and other countries.
The future of trade relations between China and the U.S. will depend on how the U.S. approaches Beijing. Analysts suggest that positive signals are needed to improve the current atmosphere and pave the way for negotiations between the two economic powerhouses.
