China Imposes Retaliatory Tariffs on U.S. Farm Goods Amid Escalating Trade War

The imposition of retaliatory tariffs by China on U.S. agricultural goods marks a significant escalation in the ongoing trade war between the two nations. On March 12, 2025, China announced tariffs ranging from 10% to 15% on $21 billion worth of U.S. farm products, including key exports such as soybeans, pork, and beef . This response comes in light of new tariffs imposed by the United States and reflects China's determination to protect its economic interests while asserting its position against perceived bullying from American trade policies. Beijing’s latest measures, which were announced last week in response to Trump slapping an additional 10 per cent levy on all Chinese products, are aimed primarily at US farm goods. Soyabeans, one of the largest US exports to China and worth $12bn last year, were hit with an additional 10 per cent duty. Cotton, chicken and corn face added 15 per cent levies.  The vast majority of US agricultural exports to China are now subject to added tariffs that will erode their competitiveness in the Chinese market. 

According to RBC economists Frances Donald and Cynthia Leach, Canada has experienced its largest trade shock in nearly 100 years. The ultimate economic impact of the tariffs will depend on the duration of their enforcement, they wrote.

Even with uncertainty swirling, there have already been changes: U.S. importers have been stockpiling goods leading up to the tariff deadline. The measures, alongside heightened uncertainty, have resulted in economic concerns for both Canada and the U.S., with growth projected to slow.

These retaliatory measures not only impact bilateral trade but also signal a broader geopolitical strategy. As part of this escalation, China has also introduced restrictions on investment and exports concerning 25 U.S. firms over national security concerns . Analysts suggest that this tit-for-tat approach increases the likelihood of a prolonged trade conflict, which could have detrimental effects on both economies and global markets . The agricultural sector is particularly vulnerable; reports indicate that these tariffs have already led to decreased prices for certain commodities and a notable decline in net farm income for U.S. producers.

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Sarah H

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