China hits US farm goods with tariffs as trade war escalates

A significant development in the ongoing trade war between the two economic superpowers is China's imposition of tariffs on U.S. farm goods. The trade conflict has been characterized by a larger pattern of retaliatory actions, with both nations imposing tariffs on each other's goods worth billions of dollars. This action is one part of that pattern.

The Key Points:

Tariffs in Retaliation: China's decision to levy tariffs on American agricultural goods is a direct response to earlier tariffs imposed by the United States on Chinese goods. The trade war has been marked by this "tit-for-tat" strategy, in which each side tries to protect its own industries and put economic pressure on the other. Effect on America Farmers: These tariffs have a significant impact on farmers in the United States. Soybeans, pork, and dairy are just a few of the American agricultural products that are exported to China. Exports have significantly decreased as a result of the tariffs, placing a financial strain on many farmers and prompting the United States government to offer agricultural subsidies as a form of relief.

Disruptions in Global Markets: The trade war has caused uncertainty in international markets and disrupted global supply chains. Trade patterns have changed as a result of the tariffs, as countries have looked for other suppliers and markets to avoid paying more for them.

Uncertainty and Negotiations: A comprehensive trade agreement has not been reached, despite numerous rounds of negotiations. Other geopolitical issues, like disagreements over technology and concerns about national security, have added layers of complexity to the situation, making the trade negotiations even more difficult. Long-term Effects: The prolonged trade war has the potential to alter the dynamics of global trade. Countries may try to reduce their reliance on either the Chinese or American markets, and businesses may reevaluate their supply chains. Both countries' and the world's economies' long-term economic effects are still unknown.

Please make use of the sharing tools that can be found by clicking the share button at the top or side of the article. It is against FT.com's terms and conditions and copyright policy to share articles. To purchase additional rights, send an email to [email protected]. Using the gift article service, subscribers can share up to ten or twenty articles per month. You can find additional information at In the most recent escalation of the trade war between the world's two largest economies, China has imposed retaliatory tariffs on approximately $22 billion worth of US goods, including agricultural exports. These tariffs are intended to target President Donald Trump's rural base. The most recent measures, which were announced last week in response to Trump's decision to impose an additional 10% tax on all Chinese goods, are primarily aimed at US farm products. An additional ten percent duty was imposed on soybeans, one of the largest exports that the United States makes to China and worth $12 billion in 2013. Cotton, chicken, and corn face all imposed 15% taxes. Added tariffs on the vast majority of US agricultural exports to China will reduce their competitiveness in the Chinese market. Nomura analysts estimated that China's additional 10% tariff covers nearly $19 billion in US imports, with an additional 15% levy on $3 billion in goods. Concerned about pests, Beijing also stopped all US timber imports last week. Last year, US exporters shipped logs worth approximately $850 million to China. While Trump has acknowledged that tariffs will cause "a little disturbance," he encouraged US farmers to "start making a lot of agricultural product to be sold INSIDE of the United States" and added, "Have fun!" on social media last week. Trump's taxes Farmers assert that Donald Trump's tariffs will cause "nothing but pain" in rural America. Over the weekend, Trump refused to rule out the possibility that his policies could lead to a recession in the United States. Experts and farmers in the United States are beginning to worry that the two countries are headed for a disastrous rerun of the US-China trade war during Trump's first term. Agriculture in the United States suffered $27 billion in losses as a result of his tariff fight in 2018, despite receiving up to $23 billion in federal compensation for trade disruptions.

Conclusion:

China's escalating tariffs on American farm products highlight the intensifying trade conflict between the two nations. Despite the fact that both parties have expressed a desire to reach an agreement, the path to a long-term agreement is fraught with obstacles. In addition to affecting the economies of the United States and China, the ongoing trade war has far-reaching effects on global trade and economic stability.