China Strikes Back: US Farm Exports Face New Tariffs Amid Trade Tensions

WASHINGTON:
The trade war between the United States and China has intensified once again, with Beijing announcing retaliatory tariffs on a range of American agricultural products in response to fresh duties imposed by the US government.

China’s finance ministry on Tuesday declared additional tariffs ranging from 10% to 15% on key US farm exports, including soybeans, corn, dairy, and beef. This move signals a continued shift in China’s trade strategy, reducing dependence on American agricultural goods while expanding ties with alternative suppliers like Brazil.

In 2024, China imported $29.25 billion worth of US agricultural products—a 14% decline from the previous year—extending a 20% drop recorded in 2023. Trade relations have soured since 2018, when Beijing imposed tariffs of up to 25% on US farm products in retaliation for measures taken by then-President Donald Trump.

Since then, China has aggressively diversified its agricultural imports and increased domestic production to strengthen food security. Despite these efforts, the US remains one of China’s primary suppliers, and American farmers still consider the Chinese market “irreplaceable.”

Soybeans

Soybeans, the leading US agricultural export to China, accounted for $12.8 billion in trade in 2024. However, China has increasingly turned to Brazil for cheaper and more readily available supplies. This shift has reduced the US market share in China from 40% in 2016 to just 21% in 2024, according to customs data.

Corn

Once a dominant supplier, US corn exports to China have plummeted. In 2024, China imported only $561 million worth of US corn, a sharp decline from $2.6 billion in 2023. The shift comes after Beijing approved Brazilian corn imports in 2022, further reducing reliance on American suppliers.

Meat and Offal

China remains a crucial market for US chicken legs, pork ears, and offal—items with limited demand domestically. However, total US meat exports to China dropped to $2.54 billion in 2024, down from $4.11 billion in 2021.

Cotton

China purchases nearly a quarter of US cotton exports, but economic challenges have affected demand in the textile and garment sectors. In 2024, US cotton shipments to China stood at $1.49 billion, slightly down from $1.57 billion in 2023.

Sorghum

China’s reliance on US sorghum has slightly increased, with imports reaching $1.73 billion in 2024, up from $1.52 billion in 2014. However, stiff competition from Australia, Argentina, and cheaper Brazilian corn is challenging US dominance in this sector.

Wheat

China imported nearly $600 million worth of US wheat in 2024, marking a three-year high. However, with ample domestic wheat supplies, China has recently scaled back overall wheat imports, posing potential risks to US shipments.

With tensions escalating between the two economic giants, American farmers are bracing for further disruptions in trade. While China remains a crucial export market, its long-term strategy of diversification and domestic expansion could permanently alter the landscape of US agricultural exports.