China's Commerce Ministry has announced an addition of up to 15% in tariffs on key agricultural imports from the United States, escalating tensions in the ongoing trade war. The new tariffs will take effect on March 10 and will impact significant US farm products such as chicken, pork, soy, and beef. This move marks another chapter in the trade conflict that began in 2018 when former President Donald Trump imposed trade barriers on China.
The conflict between the two economic giants initially arose due to allegations of unfair commercial practices and intellectual property theft by China. The United States responded with trade barriers, sparking a tit-for-tat trade war that saw tariffs imposed on various goods by both nations. In a bid to restore stability and trust, both countries signed the US-China Phase One trade deal in January 2020. This agreement required structural reforms and changes to China's economic and trade regime.
Despite these efforts, tensions have persisted. China has taken retaliatory actions by imposing tariffs on multiple US goods, including automobiles and soybeans. The new tariffs announced by China's Commerce Ministry suggest a resumption of the trade war, with policies likely to affect the global economic landscape once again.
The impact of these tariffs extends beyond the two countries involved. The global supply chains are already disrupted, leading to reduced spending, particularly in investments. The Consumer Price Index inflation is also being directly affected as the trade war continues to unfold. Experts warn that these economic disruptions could have long-lasting effects on international markets.
China has also responded with measures targeting US entities and firms.
“China has decided to include 15 US entities that endanger China’s national security and interests in the export control list, prohibiting the export of dual-use items to them,”
In addition to these measures, Beijing has placed twenty-five US firms under export and investment restrictions on national security grounds. However, it has refrained from targeting household names, a strategy it previously employed during retaliatory actions against the Trump administration's tariffs imposed on February 4.
The resumption of the US-China trade war comes amid broader global economic challenges. The conflict continues to disrupt international trade patterns, creating uncertainty for businesses and investors worldwide. The tariffs introduced by China are expected to exacerbate these issues, further complicating the global economic landscape.
The new tariffs will likely have significant implications for American farmers and exporters. The affected products, including chicken, pork, soy, and beef, represent crucial sectors of the US agricultural industry. These industries have already been struggling with market access challenges due to past tariff measures.
In response to China's recent actions, analysts predict that the United States may consider additional measures to protect its economic interests. The possibility of further trade restrictions or negotiations cannot be ruled out as both countries seek to assert their positions in the ongoing trade conflict.
The new tariffs also highlight the complexities of international trade relations in an increasingly interconnected world. As countries navigate these challenges, maintaining open lines of communication and pursuing diplomatic solutions will be essential in preventing further escalation.