China Hits Back with New Tariffs Amid U.S. Trade Tensions

BEIJING, China — China announced Tuesday it will impose additional tariffs on a range of U.S. goods starting March 10, escalating tensions between the two economic superpowers. This decision comes as new tariff measures from the United States took effect, creating an environment of increasing trade hostilities.

The latest tariffs, confirmed by the Ministry of Finance, will notably impact U.S. agricultural products including a 15% duty on corn and a 10% levy on soybeans. Other affected products include chicken, wheat, and cotton, according to a statement released on the ministry’s website.

Frederique Carrier, head of investment strategy at RBC Wealth Management, highlighted the potential escalation of these tariff measures. “Trade wars carry the risk of retaliation and escalation – and certainly in the case of China, and in the case potentially of Canada and Mexico, which also will be facing tariffs today,” Carrier said during an interview. He anticipates targeted responses from China rather than a straightforward tit-for-tat approach.

As the U.S. implements new import duties, the cumulative impact on tariffs affecting Chinese goods is expected to rise as high as 33%, according to estimates from Ting Lu, chief economist at Nomura.

China’s Ministry of Commerce has made it clear that the country firmly opposes the U.S. tariffs, describing them as detrimental to U.S.-China trade relations and urging the U.S. to retract the measures. A spokesperson indicated that these tariffs will negatively affect American businesses and everyday consumers.

China’s trade relations with the U.S. have consistently been fraught with tension, with both sides accusing each other of undermining trade agreements. In recent months, retaliatory tariffs imposed by both nations have affected various sectors, contributing to a trade battle that could intensify.

Analysts involved in trade and economic policy are concerned about the message these tariffs send, with some warning that they may lead to a deeper fracture in global trade dynamics.

On the ground, U.S. exports of agricultural products to China accounted for approximately 1.2% of total U.S. exports, representing about $22.3 billion as of 2023. However, these tariffs may further threaten this relationship, impacting trade flows and prices for consumers.

“The unilateral tariff increase by the U.S. harms the multilateral trade system, increases the burden on American businesses and consumers, and undermines the foundation of China-U.S. economic and trade cooperation,” a statement from China’s Customs Tariff Commission read.

This escalating situation underscores the fragility of international trade agreements, as both nations appear entrenched in their current positions without immediate resolution in sight.