As the ongoing trade dispute between China and the United States of America (US) intensifies, with US President Donald Trump recently announcing an additional 10 per cent tariff on Chinese imports (raising the total levy to 20 per cent), Beijing is reportedly considering retaliatory measures against American agricultural exports to China, reported The Indian Express.
Chinese state-backed media outlet Global Times reported that the country is actively “studying and formulating relevant countermeasures” in response to the latest announcement of tariffs under the pretext of controlling fentanyl inflows.
Citing an anonymous source, the report suggested that the Chinese measures shall include both tariff and non-tariff components with the US Agricultural exports on the locus.
Though the China’s Ministry of Commerce and the US Embassy in Beijing have yet to comment on the issue, historical trade data patterns suggest that in such scenarios, US agricultural exports remain a vulnerable target.
Since 2018, Beijing has imposed tariffs of up to 25 per cent on key American exports, including soybeans, beef, pork, wheat, corn, and sorghum, as a counteraction to US-imposed duties on Chinese goods.
The impact of this is that China’s import of American agricultural exports fell by 14 per cent year-over-year to $29.25 billion in 2024. This drop follows a 20 per cent decrease recorded in 2023.
Further, the timing of this tariff escalation coincides with China’s annual parliamentary meeting, during which an economic roadmap for the upcoming year is outlined. The additional tariffs announced by Trump leave Beijing with a limited window to either negotiate a resolution or implement its own trade defenses before the new duties take effect.