China is preparing countermeasures against new U.S. tariffs, focusing on American agricultural exports, according to the state-backed Global Times. This move comes after U.S. President Donald Trump announced an additional 10% tariff on Chinese imports, citing fentanyl concerns. Beijing condemned the measure as "blackmail" and is expected to respond with both tariff and non-tariff actions.
U.S. agriculture, already vulnerable in trade disputes, faces potential setbacks, with key exports like soybeans and meat at risk. Despite efforts to diversify markets, the U.S. agricultural sector may struggle with China’s retaliatory measures. China's soymeal and rapeseed meal futures surged 2.5% following the report, reflecting market uncertainty.
China imported $29.25 billion worth of U.S. agricultural products in 2024, a 14% decline from 2023. As tensions rise, analysts suggest Beijing remains open to negotiations but is prepared for a prolonged trade standoff. Wang Dong, from Peking University, warned that Trump's strategy might "backfire" and trigger strong Chinese retaliation.
During Trump’s first term, tit-for-tat tariffs disrupted global markets, and his latest move suggests another trade war is looming. In response to previous U.S. sanctions, China targeted major American companies, including Google and Calvin Klein’s parent company, and imposed tariffs on coal, oil, and cars.
As China’s annual parliamentary meeting approaches, Beijing is expected to outline its 2025 economic strategy while preparing for further U.S. actions. With the White House labeling China a “foreign adversary,” the possibility of de-escalation remains uncertain.
China’s commerce ministry has signaled a willingness to resume talks but warned of severe retaliation if the U.S. escalates tensions. The coming weeks will determine whether both economic giants engage in negotiations or enter another damaging trade conflict.