In a significant move, China announced on Tuesday its decision to impose additional tariffs of up to 15% on imports of essential U.S. farm products. This includes key items such as chicken, pork, soy, and beef. The tariffs, set to take effect on March 10, are a direct response to U.S. President Donald Trump’s recent order to increase tariffs on Chinese products to 20%, which also began on Tuesday.
The Commerce Ministry of China specified that imports of U.S.-grown chicken, wheat, corn, and cotton will incur an additional 15% tariff. Additionally, products like sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy will see a 10% increase in tariffs. This move reflects China's ongoing strategy to manage trade relations amid escalating tensions with the United States.
Alongside the tariff announcement, Beijing has also expanded its unreliable entity list by adding 10 more U.S. firms. This list now prohibits these companies from engaging in any China-related import or export activities and restricts them from making new investments in the country. The newly listed firms include TCOM Limited Partnership, Stick Rudder Enterprises LLC, and Teledyne Brown Engineering, among others. This addition follows last month’s inclusion of two firms, PVH Group and Illumina, to the same list.
In a related development, China has added 15 U.S. companies to its export control list. This list includes notable aerospace and defense firms like General Dynamics Land Systems and General Atomics Aeronautical Systems. The Commerce Ministry justified this action by stating that these entities pose a threat to China’s national security and interests, thereby prohibiting the export of dual-use items to them.
China remains a major importer of American farm products, although purchases have fluctuated since the onset of the trade war initiated during Trump’s first term. After experiencing a dip, imports rebounded, leading to record export values for U.S. soybeans, corn, beef, chicken meat, tree nuts, and sorghum in the 2021-22 period. According to the U.S. Department of Agriculture, U.S. farm exports to China reached $33.8 billion in fiscal 2023, following $36.4 billion in fiscal 2022.
Despite being a significant market for U.S. agricultural goods, China has been diversifying its sources for farm imports. This includes an increase in soybean purchases from Brazil and Argentina, among other countries. The Commerce Ministry has detailed that approximately two dozen U.S. farm exports, including chicken feet and wings, are now subject to the additional 15% tariffs, along with 711 other items facing a 10% tariff.
This ongoing trade dynamic between the U.S. and China continues to evolve, impacting both nations' agricultural sectors and broader economic relations.
