China slaps extra tariffs of up to 15% on imports of major U.S. farm exports and adds trade limits

Chickens walk in a fenced pasture at an organic farm in Iowa on Oct. 21, 2015. (AP Photo/Charlie Neibergall, File)

BEIJING — China responded to new U.S. tariffs by announcing Tuesday it will impose additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy and beef, and expanded controls on doing business with key U.S. companies.

The tariffs announced by the Commerce Ministry will take effect from March 10, though goods already in transit will be exempt until April 12. They follow U.S. President Donald Trump’s order to raise tariffs on imports of Chinese products to 20% across the board. Those took effect on Tuesday, along with 25% tariffs on imports from Canada and Mexico.

China’s is a major importer of American farm products. Purchases dipped after Trump launched a trade war during his first term and then recovered.

Now, imports of U.S.-grown chicken, wheat, corn and cotton will face an extra 15% tariff, the Chinese ministry said. Tariffs on sorghum, soybeans, pork, beef, seafood, fruit, vegetables and dairy products will be increased by 10%.

The U.S. tariffs began a day before the annual session of China’s parliament, which begins Wednesday and will focus in part on deflation and other issues affecting the world’s second largest economy.

By raising tariffs, the U.S. has repaid kindness with enmity, Chinese Foreign Ministry spokesperson Lin Jian said, adding, “I would like to reiterate that the Chinese people have never been afraid of evil, do not believe in ghosts, and have never been bullied.”

While the tariffs on American farm products are sweeping, China held back from imposing higher ones across the board, and “both sides showed restraint,” said Sun Chenghao, an international relations professor at Beijing’s Tsinghua University.

“The U.S. hopes to get a trade deal with China in the end,” Sun said. “For the long term, it is possible that China and the U.S. will continue to negotiate, but the current atmosphere is not good.”

Separately, China’s customs said it was suspending the import of U.S. lumber effective immediately, saying it had detected “forest pests such as bark beetles and longhorn beetles” in imported logs. China also suspended the soybean import qualifications of three U.S. companies after saying it detected ergot -- a kind of fungi -- as well as seed-coating agents in soybeans exported to China.

The Commerce Ministry also launched its first anti-circumvention investigation into the import of fiber optic products from the U.S., which it said was initiated at the request of a domestic fiber optic company. The evidence submitted showed that U.S. exporters “may have circumvented China’s anti-dumping measures” on certain products, the ministry said.

Also Tuesday, Beijing placed 10 more U.S. firms on its unreliable entity list, which would bar them from engaging in China-related import or export activities and making new investments in the country. Some already likely face restrictions on trade with China if their products can be used for both military and civilian purposes.

The firms listed are TCOM, Limited Partnership; Stick Rudder Enterprises LLC; Teledyne Brown Engineering; Huntington Ingalls Industries; S3 AeroDefense; Cubic Corporation; TextOre; ACT1 Federal; Exovera and Planate Management Group.

Separately, China added 15 U.S. companies to its export control list, including aerospace and defense companies like General Dynamics Land Systems and General Atomics Aeronautical Systems, among others, asserting that they “endanger China’s national security and interests.”

In 2024, China imported $24.7 billion in farm products from the U.S., or 14% of its $176 billion in total farm exports. Mexico was the largest importer of U.S. farm goods, followed by Canada.

In 2021-22, the United States logged record export values to China for soybeans, corn, beef, chicken meat, tree nuts, and sorghum. Cotton exports to China also rebounded, according to the U.S. Department of Agriculture.

But China has been diversifying its sources for farm imports, buying more soybeans from Brazil and Argentina, among others.

The Chinese Commerce Ministry included about two dozen U.S. farm exports subject to additional 15% tariffs, including chicken feet and wings, and 711 items subject to an extra 10% tariff.

Beijing is prepared to hit back, said Xu Botao, research director of the GoGlobal Institute at EqualOcean, a Shanghai-based Chinese think tank “The Chinese government and Chinese companies will not be easily frightened,” Xu said.

The end result will depend on how the U.S. approaches Beijing, analysts said.