Trade War Between China and the U.S. Intensifies as Chinese Tariffs Take Effect

China Imposes New Tariffs on U.S. Agricultural Goods Amid Escalating Trade War

China has started implementing new tariffs on some U.S. agricultural goods in response to the latest tariff increase imposed by President Donald Trump on Chinese imports. Tensions between the world’s two largest economies are expected to escalate further on Monday.

Escalation of the Trade War

Since regaining office in January, Trump has imposed tariffs on key trading partners, including China, Canada, and Mexico. He cited their failure to curb illegal immigration and the flow of deadly fentanyl into the U.S. After imposing a broad 10% tariff on all Chinese goods in early February, Trump raised the tariff rate to 20% last week.

China’s Swift Response

China’s response was quick, accusing Washington of “undermining” the multilateral trading system and announcing new retaliatory measures. These measures will impose tariffs ranging from 10% to 15% on several U.S. agricultural products starting on Monday.

Affected Goods

Key U.S. exports such as chicken, wheat, corn, and cotton will face the highest tariffs. On the other hand, products like soybeans, sorghum, pork, beef, seafood, fruits, vegetables, and dairy will incur slightly lower rates.

China’s Tariff Strategy

Analysts suggest that the retaliatory tariffs are aimed at targeting Trump’s voter base while maintaining enough restraint to leave room for a potential trade deal. These moves add to the challenges faced by Chinese leaders, who are trying to stabilize the country’s economy.

Economic Impact

The full impact of the latest round of tariffs has not yet been fully felt, although early signs indicate a decline in shipments. Official data revealed that China’s exports grew by 2.3% year-on-year in the first two months of 2025, which was below expectations.

Economic Statements in China

Chui Chang, Chief Economist at Pinpoint Asset Management, stated that exports are facing downward risks due to the trade war. He added that fiscal policy needs to become more proactive.

The Two Sessions and Growth Expectations

This economic data comes as Chinese officials gathered in Beijing for the country’s largest annual political event, known as the Two Sessions. During this event, Li Keqiang, Premier of the State Council of China, announced that the official growth target for the next year would be around 5%, the same target as for 2024.

Sources:

• Official trade data from China
• Statements from Chui Chang, Chief Economist at Pinpoint Asset Management
• Reports from the Two Sessions in Beijing