Beijing, China – In a swift response to fresh US tariffs, China announced on Tuesday retaliatory measures, including import tariff hikes of 10 to 15 percent on a range of American agricultural and food products. The move escalates tensions between the world’s two largest economies, bringing them closer to a full-blown trade war.
In addition to the tariff increases, Beijing imposed export and investment restrictions on 25 US companies, citing national security concerns. Notably, the list did not include major household names, a departure from China’s response to the Trump administration’s tariffs in February 2024. Ten of the targeted firms were penalized for selling arms to Taiwan, which China considers a breakaway province.
The latest retaliatory measures come as new US tariffs, announced by President Donald Trump last week, took effect at 0501 GMT on March 4. The additional 10 percent duty, imposed over alleged Chinese inaction on drug flows, brings the cumulative tariff on certain Chinese goods to 20 percent. China has vehemently denied the accusations, labeling them as "fentanyl blackmail" and highlighting its stringent anti-drug policies.
The new US tariffs build on preexisting levies targeting thousands of Chinese products. Key sectors, including semiconductors and electric vehicles, have faced significant tariff hikes under the Biden administration, with duties on Chinese semiconductors doubling to 50 percent and electric vehicle tariffs quadrupling to over 100 percent. The latest round of US tariffs also extends to major consumer electronics imports from China, such as smartphones, laptops, video game consoles, smartwatches, and Bluetooth devices, which were previously unaffected.
China’s immediate response included announcing additional tariffs on US agricultural and food products, set to take effect on March 10. A 15 percent tariff will be applied to US chicken, wheat, corn, and cotton, while a 10 percent levy will target soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy imports.
In a statement, China’s commerce ministry condemned the US actions, stating, “The US’s unilateral tariff measures seriously violate World Trade Organization rules and undermine the basis for economic and trade cooperation between China and the US.” The ministry emphasized that China’s retaliatory measures were necessary to safeguard its national interests and the multilateral trading system.
The escalating trade tensions between the two economic powerhouses have raised concerns about the global economic impact, particularly on supply chains and international trade stability. Analysts warn that the tit-for-tat measures could further strain bilateral relations and disrupt global markets, with both nations showing little sign of backing down.