News Brief
US President Donald Trump (left) and Xi Xinping (right)
As tensions between the world's two largest economies continue to rise, China has imposed fresh tariffs on American agricultural imports in response to President Donald Trump’s latest tariff hike on Chinese goods, as reported by The Economic Times.
The move, which came into effect on Monday (10 March), marks another escalation in the ongoing trade war.
Since returning to office in January, Trump has aggressively targeted major US trading partners. China, Canada, and Mexico have all faced increased tariffs, with Trump linking the measures to their alleged failure to curb illegal immigration and fentanyl smuggling.
Earlier this year, Trump imposed a blanket 10 per cent tariff on all Chinese imports. However, in a dramatic escalation last week, the White House doubled the rate to 20 per cent, prompting swift retaliation from Beijing.
China’s Ministry of Finance condemned Washington for “undermining the multilateral trading system” and swiftly announced new tariffs on US agricultural goods. The new levies, effective immediately, impose:
15 per cent tariffs on chicken, wheat, corn, and cotton
However, shipments that departed the US before 10 March and arrive by 12 April will be exempt from these duties.
Analysts suggest that China’s tariff strategy is highly calculated, aiming to pressure Trump’s core voter base in agriculture-heavy states while leaving the door open for future negotiations.
Farmers have already faced economic strain from past trade disputes, and Beijing’s latest move could further intensify discontent within key Republican strongholds ahead of the next US presidential election.
Beyond the trade war, Chinese leaders are battling domestic economic headwinds, including sluggish consumer spending, a prolonged property sector crisis, and high youth unemployment
While exports reached record highs last year, experts warn that a prolonged trade conflict with Washington could erode China’s economic stability, limiting its ability to rely on global trade as a growth engine.