Chinese tariffs on various U.S. agricultural products are now in effect, marking a new stage in the trade war between the U.S. and China. These measures, which range from tariffs of 10% to 15%, affect items such as grains, proteins, cotton and fresh produce. China, which recently suspended imports of U.S. soybeans and timber, is using the tariffs as a countermeasure to U.S. trade pressure.
The slowdown in China’s economy has led to a food surplus, with wheat prices hitting five-year lows and falling corn imports. To protect its farmers, the government has asked traders to limit overseas purchases and delayed soybean shipments. China, which has turned to Brazil for its soybean imports, is seeking to reduce its dependence on the United States. Finally, although China aims to stimulate its economy, tariffs on American agricultural products remain a strategic tool in its trade war, allowing it to put pressure on the United States at a lower cost. While the Asian giant remains a key export market for the Republican-majority states in the Midwest’s agricultural belt, Beijing’s efforts to reconfigure supply chains after the trade war of the first Trump presidency have weakened Washington’s influence.
Source : Bloomberg
