China Strikes Back Against Trump’s New Tariffs: U.S. Agriculture on the Front Line

In response to Donald Trump’s latest decision to impose an additional 20% tariff on all Chinese products, Beijing announced on Tuesday, March 4, 2025, a series of retaliatory measures primarily targeting American agricultural products.

Targeted Tariffs on Agricultural Products

Tariffs of 15% will be applied to chicken, wheat, corn, and cotton, while soybeans, pork, dairy products, fruits, and vegetables will face a 10% surcharge. These measures, set to take effect after March 10, 2025, target key sectors of the American rural economy, which are important to the U.S. president’s electoral base.

A statement from China’s Ministry of Finance justifies this decision by accusing Washington of undermining the multilateral trading system and weakening the foundations of Sino-American economic cooperation. At the same time, fifteen U.S. companies have been added to the export control list for posing a threat to Chinese national security.

Between Firmness and Caution: China’s Strategy

While this response is firmer than during previous trade tensions, Beijing remains cautious. Unlike the broad measures imposed by Washington, China prefers to focus its retaliations on strategic sectors rather than extending sanctions to all U.S. imports. This restraint reflects China’s desire to preserve a space for dialogue to avoid an escalation with potentially disastrous consequences for an already slowing Chinese economy.

As tensions rise, financial markets are closely watching Beijing’s response during the upcoming Chinese National People’s Congress, where the Prime Minister will outline economic plans for 2025. Xi Jinping’s regime will need to strike a balance between firmness in the face of U.S. provocations and internal stability to support an already fragile economy.

This new escalation marks a turning point in Sino-American trade relations, where each side adjusts its strategy between political pressure and economic necessity. It remains to be seen whether this tariff battle will lead to a negotiated resolution or if it foreshadows a prolonged trade conflict with global repercussions.