Source: Oleoscope (Russia)
Following a rise in tariffs on all Chinese imports to the United States from 10% to 20%, China announced on March 4 that it would impose tariffs on U.S. agricultural goods starting March 10, 2025. Tariffs for chicken meat, corn, wheat, and cotton will be set at 15%, whereas other food items, including sorghum, soybeans, pork, beef, fruits and vegetables, and dairy products, will face a 10% tariff.
Initially, these tariffs may seem minimal for American exporters, primarily since the top ten U.S. export categories to China consist mainly of oilseeds and fruits like soybeans. However, the repercussions of these measures could significantly impact American farmer-exporters. To illustrate, around 50% of U.S. soybean exports are sent to China, which imported 27 million tons in 2024, a 1% increase from the previous year. Furthermore, nearly 90% of U.S. sorghum exports go to China, amounting to 4.8 million tons in 2024, representing a 23% year-on-year rise. Certain products, such as chicken feet, see China’s share of U.S. export value exceeding 70%.
In response, China is actively implementing strategies to enhance its food security by decreasing its reliance on U.S. food imports. For instance, China has ramped up its soybean imports from Brazil, with the Brazilian share increasing from approximately 40% in 2016 to 71% in 2024 by volume. Additionally, Brazil now holds the position of the largest corn supplier to China following the approval of imports from Brazil in 2022. Consequently, U.S. corn exports to China dropped to 7 million tons in 2024, down 65% compared to 2021.