Source: Oleoscope (Russia)
Beginning on March 10, China is set to introduce extra tariffs of 10-15% on agricultural imports from the United States as a reaction to the tariff measures established by U.S. President Donald Trump, according to a declaration from China’s Ministry of Commerce.
A 15% tariff will be levied on U.S. exports including chicken, wheat, corn, and cotton, while a 10% duty will target soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy items.
In addition, China has added 15 American companies to its export control list, citing the need to safeguard national security and interests. Furthermore, an additional 10 firms have been designated as untrustworthy entities. The ministry indicated that the companies under sanctions “represent a threat to China’s national security and interests,” and local suppliers are prohibited from selling dual-use products to these U.S. firms.
These actions come in response to the increase in tariffs on Chinese imports, which have now doubled to 20% and took effect today. This is alongside a 25% tariff imposed on all imports from Mexico and Canada, encompassing approximately $1.5 trillion in yearly total value.
U.S. farmers previously faced significant challenges due to the trade wars instigated by Trump during his initial term, resulting in an estimated loss of $27 billion in export revenues and a diminishing share of the Chinese market to Brazil. In the previous year, U.S. soybean exports to China dropped to around 26.4 million tons, a significant decline from 36.1 million tons in 2016 and 31.7 million tons in 2017, marking the lowest level in 17 years. The American Soybean Association (ASA) anticipates that farmers in the U.S. will be forced to cut their production, which will enable South America to take advantage of the gap in the market. Experts warn that another trade conflict could cause a permanent decrease in the U.S. soybean market share.