China announced Tuesday it will impose additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy, and beef, and also expanded controls on doing business with U.S. companies via AP news.
China has announced new tariffs on key U.S. farm imports and agricultural products and expanded restrictions on American companies, intensifying trade tensions between the two economic giants.
New Tariffs on U.S. Farm Imports
The Chinese Commerce Ministry confirmed that additional tariffs of up to 15% on U.S. farm imports will take effect from March 10. This move follows the U.S. government's decision to increase tariffs on Chinese goods to 20%, which was implemented on Tuesday.
Under the new policy:
- U.S. chicken, wheat, corn, and cotton will face an extra 15% tariff.
- A 10% tariff will be imposed on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products.
China is a major buyer of American agricultural products, but its purchases have fluctuated due to ongoing trade disputes. In response, China has been sourcing more farm products from countries like Brazil and Argentina to reduce reliance on the U.S.
10 U.S. Firms Added to 'Unreliable Entity' List
In addition to the new tariffs, China has placed 10 more American companies on its unreliable entity list. This designation prevents these companies from engaging in import and export activities in China or making new investments in the country.
The affected firms include:
- TCOM, Limited Partnership
- Stick Rudder Enterprises LLC
- Teledyne Brown Engineering
- Huntington Ingalls Industries
- S3 AeroDefense
- Cubic Corporation
- TextOre
- ACT1 Federal
- Exovera
- Planate Management Group
Last month, China had already added two U.S. firms, PVH Group and Illumina, to the list.
More U.S. Companies Face Export Restrictions
China also expanded its export control measures by adding 15 U.S. companies to its export control list. This includes major aerospace and defense firms such as General Dynamics Land Systems and General Atomics Aeronautical Systems.
According to the Commerce Ministry, these companies were blacklisted for activities that threaten China's national security. The restrictions prohibit them from receiving dual-use items—products that have both civilian and military applications.
Trade War Continues to Escalate
China's new tariffs and restrictions mark another chapter in the ongoing trade conflict with the U.S. American farm exports to China hit record highs in recent years, reaching $36.4 billion in fiscal 2022 and $33.8 billion in fiscal 2023. Key exports included soybeans, corn, beef, chicken, tree nuts, and sorghum. However, China has been actively diversifying its suppliers, turning to other global markets.
The new tariffs will impact about two dozen American farm products, including chicken feet and wings. In total, 711 U.S. export items will now face a 10% tariff increase.
With both countries tightening trade restrictions, tensions between Beijing and Washington are expected to rise further, leaving the future of U.S.-China trade relations uncertain.
