China to Impose New Tariffs on US Commodities as Trade War Escalates
Sino-US trade tensions are mounting after Beijing is to impose new tariffs on several US agricultural commodities from Monday. This is in response to President Donald Trump’s decision to increase tariffs on Chinese imports recently. Trump, who has been ratcheting up tariffs since taking office in January, increased the rate on Chinese imports from 10% to 20% last week. For its part, China will place tariffs of 10% and 15% on US exports like chicken, wheat, corn, cotton, soybeans, pork, beef, and other agricultural products. These new tariffs have been seen as a move to target Trump’s voter base and yet leave it open for the possibility of a trade deal. In the meantime, there are economic headwinds to face for China, including soft consumer spending, the debt crisis in the property sector, and high levels of youth unemployment. The trade tensions are occurring as China’s exports are showing signs of slowing. Latest data indicate that export growth slowed to 2.3% in the first two months of 2025 from 10.7% in December 2024. Chinese leaders are now considering economic policy and have set a growth target of some 5% for the year, but experts are indicating that many believe that is going to be difficult given existing trade issues along with other issues facing the nation.