New Chinese tariffs on U.S. agricultural products, retaliation for the latest increase in American duties on Chinese imports, took effect Monday, heightening tensions between the world’s two largest economies.
Since returning to the White House in January, President Donald Trump announced a series of tariffs targeting key trading partners, including China, Canada, and Mexico—countries he claims have been ineffective in addressing irregular immigration and fentanyl trafficking.
China also holds the largest trade surplus in goods with the United States.
After imposing an additional 10% tariff on all Chinese products, Trump decided on March 3 to raise them to 20%.
China swiftly responded by announcing similar tariffs on U.S. agricultural products, which went into effect Monday.
Chicken, wheat, corn, and cotton entering China will face higher tariffs (15%) than sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy products (10%).
Experts believe China’s response targets the Republican billionaire’s voter base while remaining measured enough to keep a trade deal possible.
Trade tensions between China and the U.S. add to the challenges Chinese authorities face in stabilizing the country’s economy, which is weighed down by weak consumption, a persistent real estate crisis, and high youth unemployment.
Washington’s tariffs could deal a severe blow to Chinese exports, which drove much of the Asian giant’s growth last year.
Some analysts estimate the impact of U.S. measures may not be immediately visible.
But Chinese exports already slowed in January and February to a sharper-than-expected 2.3% year-over-year, down from 10.7% in December.
Image: Opinion
