Category: Commodities

China announced tariffs on American goods and other trade measures on Tuesday in retaliation for President Donald Trump’s increased 20 percent trade tariff against the United States,

According to the Chinese finance ministry, imports of chicken, wheat, corn, and cotton from the United States are subject to 15% tariffs and imports of soybeans, sorghum, pork, beef, fruits and vegetables, dairy products, and aquatic products are subject to 10% tariffs.

The Commerce Ministry of China placed American companies on a list of untrustworthy entities and 15 American entities on an export control list. The actions will go into effect on March 10.

The actions will go into effect on March 10. Beijing targeted several businesses, including Illumina Inc., which is currently prohibited from supplying China with gene sequencing equipment.

Beijing criticized Trump’s decision to increase import duties on all Chinese goods from 10% to 20%, prompting retaliatory actions.

Trump claimed that the purpose of the higher tariffs was to put pressure on China to stop the flow of illegal drugs, especially fentanyl, into American territory. On similar grounds, Trump also imposed 25% tariffs on Canada and Mexico and demanded that both countries tighten border controls.

Beijing retaliated with tariffs and export restrictions after Trump imposed 10% tariffs on China in February.

China’s retaliation and Tuesday’s tariffs could signal the start of a trade war between the world’s largest economies. A bitter trade war with China also characterized Trump’s first term in office, but tensions subsided after a trade agreement was signed in 2019.