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China has implemented retaliatory tariffs on approximately $22 billion worth of US goods, particularly targeting President Donald Trump’s rural support base in the ongoing trade war between the world’s top two economies.
The latest actions by Beijing, announced in response to Trump’s imposition of a 10% tariff on all Chinese products, focus primarily on US agricultural exports.
Soybeans, a significant US export to China valued at $12 billion in the previous year, now face an additional 10% duty. Additionally, cotton, chicken, and corn are subject to 15% added levies.
The majority of US agricultural exports to China are now subjected to higher tariffs, impacting their competitiveness in the Chinese market.
Analysts at Nomura estimate that China’s 10% tariff increase covers almost $19 billion in US imports, with an additional 15% levy imposed on $3 billion worth of goods.
Last week, Beijing also halted imports of all US timber due to pest concerns, with US log exports to China totaling around $850 million last year.
While acknowledging that tariffs may cause disruptions, Trump advised US farmers via social media to focus on producing agricultural goods for domestic sale, stating, “Have fun!”
During the weekend, Trump did not rule out the possibility that his policies could lead to a recession in the US.
Experts, along with US farmers, are growing concerned about a potential reprise of the US-China trade conflict that occurred during Trump’s initial presidential term.
The 2018 tariff disputes resulted in $27 billion in losses for US agriculture, but farms received up to $23 billion in compensation from the federal government to mitigate trade disruptions.