After Canada, China retaliates against Trump's tariffs with 15% duties
What's the story
In retaliation to the recent tariff hikes by the US, China has imposed its own set of tariffs on American goods.
The Chinese government announced a duty of up to 15% on a range of US exports.
This comes after the Trump administration doubled tariffs (up to 20%) on all Chinese exports, escalating the ongoing trade war between the world's top two economies.
Trump said China had done too little to curb the flow of illicit fentanyl into the US.
Tariff details
China to impose tariffs on US agricultural products
The Chinese government acted just hours after President Donald Trump signed an executive order for the tariff hike.
China's new tariffs will go as high as 15% on American goods such as chicken, wheat, corn, and cotton.
A 10% tariff will also be imposed on US soybeans, sorghum, pork, beef, aquatic products fruits and vegetables.
The Chinese Ministry of Commerce also announced it would put 10 American companies involved in defense and construction work on an unreliable list.
Market analysis
Impact of US tariffs on China's domestic market
From a supply and demand perspective, the short-term impact on China's domestic market isn't expected to be significant.
This is because of the current South American soybean season and a decrease in US soybean purchases by Beijing.
However, experts warn that these new tariffs could pose challenges for China's aquatic product exports to the US.
China—the biggest market for US agricultural products—has reduced imports since 2018. In 2024, it imported $29.25 billion worth of US agricultural goods—a 14% YoY decline.
Canada's counter
Canada has also announced counter-tariffs against US
Trump has imposed 25% tariff on goods coming from Canada, with Canadian energy facing an additional 10% levy.
Canadian Prime Minister Justin Trudeau condemned Trump's decision, calling it 'unjustified' and vowed that Canada would not let the tariffs go unanswered.
"The first stage will see 25% tariffs placed on approximately $20.6 billion worth of goods from US exporters. These measures will take effect at 12.01 am. New York time unless the US reverses its decision," Trudeau said.