US-China trade war intensifies as Beijing imposes new tariffs on American farms

The New York Times describes in a recent article that China has slapped new tariffs on a range of US agricultural products, sparking further tensions between the world’s two largest economies. 

The move follows US President Donald Trump’s decision to raise tariffs on Chinese imports for the second time since taking office in January.

The new Chinese tariffs include a 15 per cent levy on US products such as chicken, wheat, and corn, and a 10 per cent tariff on soybeans, pork, beef, and fruit. Goods shipped before March 10 and arriving by April 12 will be exempt from the new tariffs. Since many of these commodities are transported by sea, China is expected to collect minimal tariffs until shipments that departed the US on or after March 10 arrive.

A spokesperson for China’s National People’s Congress, which is currently holding its annual legislative session, criticised President Trump’s tariff actions, stating that they had “disrupted the security and stability of global industrial and supply chains.” The Chinese government also announced it would block 15 US companies from buying Chinese products, including a drone manufacturer that supplies the US military. Additionally, 10 US companies were banned from conducting business in China.

President Trump has defended his tariffs, stating that they are necessary to rebuild the US industrial sector and generate tax revenue. In February, he imposed a 10 per cent tariff on nearly all Chinese imports, raising it to 20 per cent last week. He also added 25 per cent tariffs on goods from Canada and Mexico, although he suspended many of these tariffs two days later. The tariffs on Chinese goods now average 39 per cent, a significant increase from 3 per cent when Trump began his presidency.

Despite the escalating tensions, both Washington and Beijing have hinted at the possibility of reaching a compromise. China’s commerce minister recently invited his US counterpart and trade representative to a meeting, and Trump has suggested a new trade deal with China is “possible.” However, China faces its own economic challenges, including weak foreign investment and the aftermath of a real estate crisis.

By Naila Huseynova