In an escalation of the trade-war between US and China, Beijing announced it will impose new tariffs on a range of agricultural imports from the United States, effective next week. This came hours after US President Donald Trump announced increased tariffs against China.
The tariffs, as outlined by China’s finance ministry, will see an additional 15% tax on imports such as chicken, wheat, corn, and cotton. A 10% tariff will also be levied on a range of other products, including sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy.
Also read: US markets tumble as Trump confirms tariffs on Canada, Mexico
“China has decided to include 15 US entities that endanger China’s national security and interests in the export control list, prohibiting the export of dual-use items to them,” China’s commerce ministry said.
The US has been increasing tariffs on several countries, including China, in an ongoing trade dispute. On Monday, President Donald Trump signed an order to increase the existing 10% tariff on Chinese imports to 20%. This move is part of the broader trade strategy to address what Trump describes as unfair economic practices by China, while also aiming to curb the flow of illicit drugs like fentanyl into the United States.
Markets reacted with concern to the escalating trade tensions. Asian markets, including Japan’s Nikkei and Hong Kong’s Hang Seng, saw significant losses following the announcement of the new tariffs. Economists warn that the trade war could raise consumer prices and stifle economic growth. The Tax Foundation has estimated that the current tariffs could reduce US economic output by 0.1%.
While Trump has argued that tariffs are a tool to address long-standing trade imbalances and protect American workers, critics, including former US officials and economists, caution that these measures could backfire, leading to higher costs and potential job losses.
