The US-China trade war has taken another turn, with the United States imposing a new 10% tariff on all goods coming from China. This follows a previous 10% tariff introduced just last month, bringing the total duty to 20% since Donald Trump took office. Last year, Trump hinted at tariffs that could reach as high as 60%, leaving room for further increases in the future. China is preparing for this possibility.
In response, China has quickly announced its own tariffs on US agricultural products. These tariffs range from 10% to 15% and affect a variety of goods, including chicken, wheat, corn, cotton, soybeans, pork, beef, dairy, and various fruits and vegetables. This retaliation follows last month’s tariffs imposed by China on US crude oil, liquefied natural gas, and coal. Additionally, China has restricted the export of essential minerals to the US and is expanding its list of US companies deemed "unreliable."
The ongoing trade tensions are intensifying, with both countries exchanging accusations. The US has blamed China for contributing to the American drug crisis by supplying chemicals for fentanyl production. In contrast, China argues that this issue originates in the US.
This trade conflict is unfolding during a critical week for China, as the National People’s Congress is set to convene in Beijing. This meeting will outline China’s economic plans for the year ahead, a time when the country is already grappling with significant challenges like a housing crisis, high youth unemployment, and sluggish consumer spending. The last thing Beijing wants is the added burden of tariffs.
China aims to project itself as a stable and responsible economic partner, unwilling to be intimidated by US actions. Communication between President Trump and President Xi Jinping has been sparse since January, and as time passes, the tariffs continue to rise. The situation remains fluid, and the world is watching closely as the two largest economies navigate this complex trade landscape.