China Plans Countermeasures Against US Agricultural Exports Amid Tariff Escalation
China is preparing to impose countermeasures against US tariffs on agricultural products, following President Trump’s threat of a 10% import duty. This escalation in trade tensions raises concerns over a potential trade war between the two largest economies. Despite previous reductions in imports, China remains a significant market for US agricultural exports, which may be targeted further as retaliatory measures are developed.
On March 3, 2025, it was reported that China is targeting American agricultural exports as a countermeasure to newly proposed US import tariffs. President Donald Trump has threatened to impose a 10% duty, resulting in a cumulative tariff of 20%. This escalates the ongoing trade tensions between the United States and China, the two largest economies in the world.
According to China’s state-backed Global Times, the Chinese government is developing countermeasures in response to Trump’s tariff threats. An anonymous source cited in the report suggested that both tariff and non-tariff measures would be implemented, likely affecting US agricultural and food products significantly.
Despite a reduction in imports since 2018 due to previous tariffs, China remains the largest importer of US agricultural goods. In 2024, China imported $29.25 billion worth of US agricultural products—a 14% decline from the previous year—continuing a trend of decreasing imports following retaliatory tariffs.
The Global Times has previously reported on China’s planned responses to other international tariffs, indicating that Beijing is prepared to take significant steps in this trade conflict. With the upcoming Chinese parliamentary meeting focused on establishing economic priorities for 2025, the timing of Trump’s tariff announcement leaves China with limited options for both countermeasures and negotiations.
Experts suggest that while Beijing is still interested in negotiating a trade truce with the Trump administration, the lack of formal discussions diminishes the likelihood of resolution. Wang Dong, of the Institute for Global Cooperation and Understanding, warned that the current tariff decisions might ultimately backfire on the US as China will respond robustly.
Historical context indicates that previous tariff escalations during Trump’s first term initiated a widespread trade war, which adversely impacted global markets and economic growth. Following Trump’s recent tariffs concerning fentanyl, China swiftly retaliated with countermeasures affecting US corporations and imports.
China’s commerce ministry expressed a desire to re-engage in negotiations, cautioning that the absence of dialogue could provoke further retaliatory actions. In a recent Politburo meeting, top officials emphasized the need to shield China’s economy from external disturbances amidst escalating tensions with the US and its new “foreign adversaries” designation.
In summary, China is poised to respond to US tariff threats with potential tariffs on American agricultural products as economic tensions escalate. The lack of ongoing negotiations diminishes hopes for a quick resolution, with both nations bracing for potential retaliatory measures. Analysts suggest that continued aggressiveness may lead to adverse consequences for both economies, reminiscent of previous trade conflicts during Trump’s administration.
Original Source: indianexpress.com
