China’s New Tariffs on U.S. Agricultural Imports Escalate Trade Tensions
China will impose up to 15 percent tariffs on key U.S. agricultural products starting March 10, a response to increased U.S. tariffs. Concurrently, 10 U.S. companies have been added to China’s unreliable entity list, barring their business dealings in China. The ongoing trade tensions between the U.S. and China signal a complicated negotiating environment ahead.
China has declared its intention to implement additional tariffs of up to 15 percent on significant U.S. agricultural imports, including chicken, pork, soybeans, and beef, effective March 10. Products currently in transit will be exempt from these tariffs until April 12. This move follows the U.S. decision to increase tariffs on Chinese imports to 20 percent across the board, which took effect concurrently, alongside a 25 percent tariff on goods from Canada and Mexico.
According to the Chinese Ministry of Commerce, the new tariffs include an additional 15 percent levy on U.S. chicken, wheat, corn, and cotton. Meanwhile, tariffs on commodities such as sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy will see a 10 percent increase. Concurrently, Beijing has placed ten more American companies on its unreliable entity list, restricting their trade with China, particularly those whose products may have alternative military applications.
The listed companies include TCOM Limited Partnership, Stick Rudder Enterprises LLC, and Teledyne Brown Engineering, among others. Furthermore, China has added 15 U.S. firms, primarily in the aerospace and defense sectors, to its export control list, encompassing entities such as General Dynamics Land Systems. The Ministry indicated these firms present a risk to China’s national security.
Despite implementing these extensive tariffs on U.S. agricultural goods, China refrained from imposing uniformly higher tariffs on all imports. According to Sun Chenghao, an international relations expert from Tsinghua University, both nations have demonstrated some restraint in their actions. He suggests that while a trade agreement may still be pursued, the current climate is not conducive to productive negotiations.
Chinese Foreign Ministry spokesperson Lin Jian remarked, “By raising tariffs, the U.S. has repaid kindness with enmity.” He emphasized that the Chinese populace has a resilient spirit, stating, “The Chinese people have never been afraid of evil, do not believe in ghosts, and have never been bullied.” China remains a significant importer of U.S. farm products, with purchases decreasing during the trade conflict but rebounding subsequently. In 2024, the total value of U.S. agricultural imports amounted to $24.7 billion, with Mexico leading as the largest importer.
In conclusion, China has announced new tariffs on key U.S. agricultural products, coinciding with the U.S. increasing tariffs on Chinese imports. While both countries have shown some restraint, tensions remain high, and negotiations will be challenged by the current adversarial climate. Analysts suggest that the outcome of these trade disputes hinges on the U.S.’s diplomatic approach toward China, which has so far exhibited no positive indications for dialogue. The economic relations between the two nations are poised for ongoing complexity as they navigate these tariffs and controls.
Original Source: globalnews.ca
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