Beijing has enacted new tariffs on various U.S. agricultural goods in retaliation against President Trump’s tariffs, intensifying trade tensions. These new measures target products such as chicken and wheat and aim to impact Trump’s voter base while allowing for future negotiations. Analysts express concerns over China’s economic stability amid these challenges, indicating a need for proactive fiscal policies.

Beijing has implemented new tariffs on select U.S. agricultural products in response to President Donald Trump’s recent tariff increases on Chinese imports, which took effect on Monday. Trump’s administration has escalated trade tensions by imposing numerous tariffs on trading partners including China, citing issues related to illegal immigration and the trafficking of fentanyl as reasons for these measures.

Following the initial 10 percent tariff on all Chinese goods introduced in February, the rate was increased to 20 percent last week. China’s Finance Ministry swiftly condemned the U.S. actions, accusing them of undermining international trade agreements, and announced its own set of tariffs which includes levy rates of 10 and 15 percent on various American farm goods like chicken, wheat, corn, and cotton.

Products such as soybeans, sorghum, pork, beef, fruits, vegetables, and dairy will incur slightly lower tariffs. However, goods shipped before March 10 and arriving in China by April 12 will be exempt from these new tariffs. Analysts suggest that these retaliatory tariffs are strategically aimed at impacting Trump’s voter base while still leaving room for potential negotiations towards a trade agreement.

The trade friction further complicates the challenges faced by Chinese leaders as they try to stabilize an economy experiencing sluggish consumer spending, a persistent debt crisis in the property sector, and rising youth unemployment. Despite achieving record export levels last year, analysts foresee that the trade conflict could inhibit China’s economic recovery. Recent data indicated a 2.3 percent growth in exports in the first two months of 2025, which notably fell short of expectations compared to a 10.7 percent growth in December.

In response to these issues, Premier Li Qiang addressed delegates at the “Two Sessions” political gathering, unveiling the government’s economic strategy and setting a modest growth target of “around five percent” for the upcoming year amidst external pressures. Economists view this target as ambitious, given the current economic challenges.

In conclusion, the recent escalation in tariffs between China and the United States highlights the growing trade tensions between the two nations. Beijing has responded with tariffs on U.S. agricultural goods while attempting to mitigate damage to its economy. China’s economic challenges, combined with the ambitious growth targets set by its government, reflect a precarious situation that could be further affected by ongoing trade negotiations.

Original Source: www.hindustantimes.com

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