China to Impose Additional Tariffs on U.S. Agricultural Products Starting Monday

Beijing – March 09, 2025
China will begin enforcing additional customs tariffs on a range of U.S. agricultural products starting Monday, March 10, in retaliation to escalated tariffs imposed by U.S. President Donald Trump on Chinese imports earlier this week. The move marks a fresh escalation in the ongoing trade war between the world’s two largest economies.

Tit-for-Tat Tariffs Intensify

Since reclaiming the White House in January 2025, Trump has imposed tariffs on key trading partners—including China, Canada, and Mexico—citing their insufficient cooperation in combating illegal immigration and drug trafficking, notably fentanyl. China, which boasts the largest trade surplus with the U.S., has been a primary target. After initially levying a 10% tariff on all Chinese goods, Trump raised it to 20% on March 3, prompting an immediate outcry from Beijing, which expressed “deep displeasure” and vowed reciprocal measures.

Starting tomorrow, China will impose a 15% tariff on U.S. imports such as chicken, wheat, corn, and cotton, alongside a 10% tariff on products like white corn, soybeans, pork, beef, seafood, fruits, vegetables, and dairy derivatives. Analysts suggest this response targets Trump’s rural voter base while remaining moderate enough to leave room for potential trade negotiations.

Economic Stakes in the Trade War

The U.S. tariffs are poised to deliver a severe blow to Chinese exports, which significantly fueled the Asian giant’s growth last year. However, China’s exports already slowed markedly in January and February to a 2.3% annual increase, down from 10.7% in December, reflecting mounting economic pressures. Domestically, China faces a sluggish consumer market, a real estate crisis, and rising youth unemployment, challenges now compounded by this trade standoff.

Chiu Chang, chief economist at Pinpoint Asset Management, noted, “With exports at risk of declining due to an imminent trade war, fiscal policy must become more proactive.” Meanwhile, Trump’s measures threaten to disrupt China’s economic stability further, though their full impact may take time to materialize.

China’s Economic Strategy Amid Global Tensions

This tariff escalation coincides with China’s “Two Sessions,” the country’s major annual political event, currently underway in Beijing. On Wednesday, Premier Li Qiang outlined the government’s 2025 economic strategy before the National People’s Congress, acknowledging an “increasingly complex external environment.” He set a growth target of “around 5%,” mirroring 2024’s goal, though many economists view this as ambitious given China’s headwinds.

Julian Evans-Pritchard of Capital Economics cautioned, “If fiscal spending ramps up soon, it might offset the short-term impact of tariffs on growth. However, given the headwinds, we’re not yet convinced that fiscal support will suffice beyond a temporary boost.”

Targeting Trump’s Base, Eyeing a Deal

China’s tariff choices—hitting U.S. agricultural staples—appear calculated to pressure Trump’s political stronghold in America’s heartland, where farmers have long relied on Chinese markets. Yet, the relatively restrained rates suggest Beijing is keeping the door open for dialogue. Trump, who during his first term launched a bruising two-year trade war with China, has signaled that a deal remains “possible,” though no direct talks with Chinese President Xi Jinping are scheduled until later this week.

As the trade confrontation deepens, both nations brace for economic fallout. For China, the stakes include stabilizing its economy amid global uncertainty, while the U.S. risks higher consumer prices and supply chain disruptions. With the world watching, the coming weeks could determine whether this tit-for-tat escalates further or paves the way for a breakthrough.

Stay tuned for updates on China-U.S. tariffs, the 2025 trade war, and their global economic impact.