Trade War Intensifies: China Imposes 15% Tariffs On US Goods
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China has announced retaliatory tariffs of up to 15% on US goods, set to take effect on March 10, 2025, in response to the Trump administration’s recent tariff hikes.
This move marks a significant escalation in the ongoing trade tensions between the world’s two largest economies.
The Chinese Ministry of Commerce revealed that imports of US chicken, wheat, corn, and cotton will face an additional 15% tariff, while sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products will see a 10% increase.
These targeted agricultural products represent key exports from the United States to China, potentially impacting American farmers and the broader agricultural sector.
In addition to the tariffs, China has taken further retaliatory measures by adding 10 more US companies to its “unreliable entities” list, which prohibits these firms from engaging in China-related import or export activities.
This list includes major defence contractors such as Lockheed Martin, signalling China’s willingness to target strategic industries.
The escalation of trade tensions has sent shockwaves through global markets, with investors bracing for potential economic fallout.
The comprehensive nature of these tariffs, affecting a wide range of industries from agriculture to technology, suggests that the impact could be far-reaching and complex.
As both nations dig in their heels, the possibility of further retaliation looms large.
The US has already implemented a 25% tariff on imports from Canada and Mexico, along with raising tariffs on Chinese goods to 20%.
This tit-for-tat approach raises concerns about a potential full-blown trade war that could destabilise global trade and economic growth.
The path to compromise appears increasingly challenging, given the hardline stance taken by both sides.
President Trump has indicated that there is “no room left for discussions” with Canada and Mexico regarding the tariffs, suggesting a similar approach may be taken with China.
As these trade tensions unfold, markets are likely to experience heightened volatility.
Investors and businesses should brace for potential disruptions in supply chains, fluctuations in commodity prices, and shifts in global trade patterns.
The coming weeks will be crucial in determining whether diplomatic efforts can prevail or if the world is heading towards a protracted period of economic uncertainty and trade conflicts.
Sources: eToro, MarketScreener
