China has imposed new tariffs on US agricultural imports in response to President Donald Trump’s latest tariff hikes on Chinese goods, further intensifying the ongoing US-China trade war.
The retaliatory tariffs, which took effect on Monday, target key American farm products, including chicken, wheat, corn, and cotton, with a 15% levy, while soybeans, sorghum, pork, beef, seafood, fruit, vegetables, and dairy face a 10% tariff. However, shipments that left before March 10 and arrive by April 12 are exempt from the new charges.
Tit-for-Tat Tariff War
Since returning to office in January 2025, Trump has aggressively expanded tariff policies, citing national security and economic concerns. His administration imposed a 10% blanket tariff on all Chinese goods in February, raising it to 20% last week.
Beijing reacted swiftly, with its finance ministry accusing Washington of “undermining the multilateral trading system.” Analysts suggest that China’s countermeasures are strategically aimed at Trump’s voter base—primarily US farmers—while leaving room for potential negotiations.
China’s Economic Challenges Amid Trade Dispute
The escalating trade conflict comes as China grapples with economic uncertainty, including sluggish consumer demand, a prolonged property sector crisis, and high youth unemployment.
Recent trade data indicate early signs of a slowdown, with China’s export growth falling to 2.3% year-on-year in the first two months of 2025, down from 10.7% in December 2024. Experts warn that China’s record-high exports last year might not provide the same economic boost as tensions with the US persist.
Government Response and Economic Strategy
As Chinese officials gather for the country’s largest annual political summit, the “Two Sessions,” Premier Li Qiang acknowledged the “complex and severe external environment.” Despite the challenges, he maintained the government’s 5% growth target for 2025—an ambitious goal, according to economists.
“If fiscal spending ramps up soon, it could offset the short-term impact of tariffs,” said Julian Evans-Pritchard of Capital Economics. However, he warned that wider economic challenges might limit the effectiveness of fiscal support.
The full impact of the latest tariffs remains uncertain, but analysts predict further disruptions in global trade as tensions between the world’s two largest economies continue to escalate.
Source: https://www.arabnews.com/node/2593051/world