Beijing responds to U.S. tariffs: +10% and +15% on food products
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On Monday, March 10th, new tariffs imposed by China on certain U.S. products went into effect, in response to the tariffs imposed by the Trump administration. There will be a 10% increase on soybeans, sorghum, fruit, pork and beef, seafood, vegetables, and dairy products; and a 15% increase on poultry, cotton, corn, and wheat.
While Canada and Mexico held phone talks with the U.S. President in the days following the U.S. tariffs' announcement, Beijing stated it was open to dialogue but also ready if the United States were to impose further tariffs on goods imported from China.
Compared to Trump’s first term, Xi Jinping's China engages in trade relations with more countries and has diversified its supply channels for key food sector products, such as soybeans, which are now purchased from Brazil, Argentina, and no longer from the United States.
Nevertheless, the new tariffs will not apply to goods shipped before March 10th, provided they reach China by April 12th. Analysts speculate that this strategy is aimed at two major goals: to increase discontent within the Republican electoral base while leaving enough room for maneuver in case a trade deal between China and the United States is reached.
While Canada and Mexico held phone talks with the U.S. President in the days following the U.S. tariffs' announcement, Beijing stated it was open to dialogue but also ready if the United States were to impose further tariffs on goods imported from China.
Compared to Trump’s first term, Xi Jinping's China engages in trade relations with more countries and has diversified its supply channels for key food sector products, such as soybeans, which are now purchased from Brazil, Argentina, and no longer from the United States.
Nevertheless, the new tariffs will not apply to goods shipped before March 10th, provided they reach China by April 12th. Analysts speculate that this strategy is aimed at two major goals: to increase discontent within the Republican electoral base while leaving enough room for maneuver in case a trade deal between China and the United States is reached.