Key Points:
- China will impose up to 15% additional tariffs on select U.S. goods starting March 10 and restrict exports to 15 U.S. companies.
- The move follows the U.S.’s latest round of tariff hikes on Chinese imports, which took effect Tuesday.
- Key affected goods include U.S. agricultural exports, with corn and soybeans facing new tariffs of 15% and 10%, respectively.
- Among the U.S. companies impacted by export restrictions are Leidos and General Dynamics Land Systems.
- The escalating trade tensions come as China’s National People’s Congress prepares to convene its annual session.
Beijing Retaliates Amid Rising U.S.-China Trade War
BEIJING — China has announced a fresh round of retaliatory tariffs and export restrictions, escalating trade tensions with the United States. Effective March 10, new Chinese tariffs of up to 15% will target key U.S. exports, particularly agricultural products, according to statements from China’s Ministry of Finance and Ministry of Commerce.
The measures come in direct response to the latest U.S. tariff hikes, which took effect on Tuesday, bringing the total increase in U.S. duties on Chinese goods to 20% within just one month.
Key Sectors Targeted: Agriculture and Defense
The new Chinese tariffs focus primarily on U.S. agricultural exports, a sector heavily reliant on trade with China.
- Corn will be hit with a 15% tariff, while
- Soybeans will face a 10% tariff.
Additionally, Beijing has imposed export restrictions on 15 U.S. firms, including defense contractors Leidos and General Dynamics Land Systems. These restrictions will likely disrupt U.S. military supply chains and further strain trade relations.
China Rejects U.S. “Pressure and Threats”
Lou Qinjian, spokesperson for China’s National People’s Congress (NPC), which begins its annual session on Wednesday, stated that while disagreements with the U.S. are inevitable, China will not tolerate coercion or intimidation.
In an official statement, China’s Ministry of Commerce strongly condemned the U.S. tariff hikes, urging Washington to withdraw its measures, warning that they will “hurt U.S.-China trade relations.”
The Bigger Picture: Rising U.S. Tariff Burden
The latest tariff hike marks another step in the intensifying trade conflict between the two economic superpowers. According to Nomura Chief China Economist Ting Lu, the average U.S. tariff rate on Chinese goods is now projected to reach 33%, a sharp increase from 13% before President Donald Trump’s latest term began in January.
The Chinese state-backed Global Times reported that Beijing was considering additional retaliatory tariffs on U.S. agricultural products, a sector already in the crosshairs of previous trade disputes.
U.S. Agricultural Exports in the Crossfire
U.S. agricultural products are among the most vulnerable in the trade war, as China remains one of the largest importers of these goods.
- Soybeans accounted for the largest share of U.S. exports to China, representing 1.2% of total exports ($22.3 billion in 2023).
- Oil and gas ranked second at 1% ($19.3 billion).
- Pharmaceuticals ranked third at 0.8% ($15.6 billion).
What’s Next? More Retaliation Expected
Analysts warn that the tit-for-tat escalation could continue, with China potentially expanding tariffs and restrictions in response to any further U.S. measures.
“Trade wars carry the risk of retaliation and escalation,” said Frederique Carrier, head of investment strategy at RBC Wealth Management. “Even if the response isn’t exactly tit-for-tat, we can expect targeted measures to send a strong message.”
As tensions mount, all eyes are on China’s next move—and whether the U.S. will soften its stance or push ahead with further tariffs.
