China has begun enforcing tariffs on a wide range of agricultural products from the United States, intensifying the ongoing trade dispute between the world’s two largest economies.
The tariffs, which took effect on Monday, come as a direct response to recent US tariff hikes under President Donald Trump.
Beijing, which is the largest overseas market for US farm products, announced the move last week after Trump raised tariffs on Chinese goods for the second time since he assumed office.
The new Chinese tariffs include a 15 per cent levy on items such as chicken, wheat and corn, and 10 per cent on soybeans, pork, beef and fruit.
Beijing clarified that goods already shipped by Monday and imported by April 12 would be exempt from the new tariffs.
According to The New York Times, a spokesperson for the National People’s Congress at the China’s annual legislative session, said last week that Trump’s latest tariffs had “disrupted the security and stability of the global industrial and supply chains.”
Further retaliatory measures from China include barring 15 US companies from purchasing Chinese products without special permission, notably including a drone manufacturer that supplies the US military. Another 10 American firms have been blocked from doing business in China entirely.
The new levies follow a series of escalating tariff actions by the United States. In early February, Trump imposed a 10 per cent tariff on nearly all imports from China, later increasing it to 20 percent. He said the tariffs were also aimed at curbing the flow of fentanyl into the US.
Trump also slapped 25 per cent tariffs on Canadian and Mexican goods last Tuesday but reversed many of those measures within two days.
Overall, the United States now imposes a 20 per cent tariff on approximately $440 billion worth of Chinese goods annually. This has driven the average tariff on affected Chinese imports to 39 per cent, up sharply from just 3 per cent at the start of Trump’s first term eight years ago. Outside of China, Canada and Mexico, average US tariffs on most countries remain at around 3 per cent.
Despite the heightened tensions, both nations have shown signs of a willingness to negotiate. Last week, China’s commerce minister said he had invited his US counterpart and the US trade representative for a meeting. Trump also said last month that a new trade deal with China was “possible.”
Monday’s measures are the latest in a series of tit-for-tat responses between both countries. After Trump’s February tariff hike, China imposed duties on US exports such as natural gas, coal and farm equipment.
However, the United States holds a strategic advantage in the trade dispute, as it imports significantly more goods from China than vice versa. This imbalance has allowed Washington to escalate more forcefully in past tariff exchanges.
China’s capacity to retaliate is further constrained by domestic economic challenges, including weak foreign investment and a recent real estate downturn.
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