China Hits Back with New Tariffs on U.S. Farm Products and Expands Restrictions on U.S. Companies

In response to the United States’ new tariffs, China announced on Tuesday that it will impose additional tariffs of up to 15% on key U.S. farm products, including chicken, pork, soybeans, and beef. The move also includes expanded restrictions on dealings with major U.S. companies.

The tariffs, confirmed by China’s Commerce Ministry, are set to take effect on March 10. However, goods already in transit will be exempt until April 12. This escalation follows U.S. President Donald Trump’s recent decision to raise tariffs on Chinese imports to 20%, which began on Tuesday, along with 25% tariffs on goods from Canada and Mexico.

China is a significant importer of U.S. agricultural products, although purchases dropped after the trade war began during Trump’s first term, before seeing a recovery. Under the new tariffs, imports of U.S.-grown chicken, wheat, corn, and cotton will be hit with an additional 15% tariff, while tariffs on other products like sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy will be raised by 10%.

The timing of these tariffs coincides with the start of China’s annual parliamentary session, which will address issues such as deflation and economic challenges faced by the world’s second-largest economy.

In a statement, Chinese Foreign Ministry spokesperson Lin Jian condemned the U.S. tariffs, calling them a betrayal. “By raising tariffs, the U.S. has repaid kindness with enmity,” Lin said. “The Chinese people have never been afraid of evil, do not believe in ghosts, and have never been bullied.”

Despite the sweeping tariffs on U.S. agricultural products, China refrained from imposing broader tariffs on all U.S. goods. Sun Chenghao, an international relations professor at Tsinghua University in Beijing, noted that both countries had shown some restraint. “The U.S. hopes to reach a trade deal with China eventually,” Sun said, adding that, despite the current tense atmosphere, negotiations are likely to continue.

In a separate move, China’s customs authorities announced they were suspending U.S. lumber imports, citing concerns about “forest pests such as bark beetles and longhorn beetles” found in imported logs. Additionally, China suspended the soybean import qualifications of three U.S. companies due to the discovery of ergot (a type of fungus) and seed-coating agents in U.S. soybeans.

The Commerce Ministry also launched an anti-circumvention investigation into fiber optic products from the U.S., following a request from a domestic Chinese company. The investigation focuses on potential circumvention of China’s anti-dumping measures.

On the same day, Beijing added 10 more U.S. firms to its “unreliable entity list,” which bans them from engaging in import or export activities with China or making new investments in the country. The list includes companies like TCOM, Stick Rudder Enterprises, Teledyne Brown Engineering, and Huntington Ingalls Industries. Some of these companies may already face trade restrictions if their products have military and civilian applications.

China also added 15 more U.S. companies to its export control list, including aerospace and defense firms like General Dynamics Land Systems and General Atomics Aeronautical Systems. China cited national security concerns in these new listings.

In 2024, China imported $24.7 billion worth of U.S. agricultural products, accounting for 14% of its $176 billion total farm imports. Mexico remains the largest importer of U.S. farm products, followed by Canada.

Although China continues to diversify its sources for agricultural imports—particularly soybeans from Brazil and Argentina—U.S. exports to China have seen significant growth, especially in soybeans, corn, beef, chicken, tree nuts, and sorghum. U.S. Department of Agriculture data also shows a rebound in cotton exports to China.

The Chinese tariffs will impact a wide range of U.S. agricultural exports, including chicken feet, wings, and other products, with 711 items facing an additional 10% tariff.

China’s response signals that Beijing is prepared for continued escalation, according to Xu Botao, research director at EqualOcean, a Shanghai-based think tank. “The Chinese government and Chinese companies will not be easily frightened,” Xu stated.

Ultimately, analysts believe the outcome of this trade dispute will depend largely on how the U.S. approaches its relationship with China moving forward.