China is targeting US agricultural exports as it prepares countermeasures against new US import tariffs.

China is targeting US agricultural exports as it prepares countermeasures against new US import tariffs, China's Global Times reported, escalating tensions in the escalating trade war between the world's two largest economies.

Last week, US President Donald Trump threatened China with an additional 10% tariff effective March 4, bringing the cumulative tariff to 20%, and accused Beijing of not doing enough to stem the flow of fentanyl into the US.

In response, China is studying and formulating relevant countermeasures to respond to the US's threat to impose an additional 10% tariff on Chinese products on the grounds of fentanyl.

“The countermeasures are likely to include tariffs and a range of non-tariff measures, and US agricultural and food products are likely to be included,” the Global Times added.

China is the largest market for US agricultural products and the sector has long been an easy target during trade tensions.

“Although imports have declined since 2018, any tariffs on key US agricultural products such as soybeans, meat and grains could have a significant impact on US-China trade as well as US exporters and farmers,” said Genevieve Donnellon-May, a researcher at the Oxford Global Society.

China’s most active soybean meal and rapeseed meal futures, which have been supported by supply shortages, both rose 2.5% following the Global Times report. Soybean meal futures on the Dalian Commodity Exchange hit their highest since September 30, 2024.

The world's top agricultural importer and second-largest economy, China, imported $29.25 billion worth of agricultural products from the United States in 2024, down 14% from the previous year, extending the 20% decline seen in 2023.

Are Trump's tariffs "backfiring"?

Analysts say Beijing still hopes to negotiate a truce with the Trump administration, but with no signs of any trade talks, the prospect of a rapprochement between the two major economies is fading.

The bar chart shows the market shares of Brazil and the US in China's total agricultural imports between 2015 and 2024, and the rest is a line chart showing the agricultural imports from Brazil and the US between 2015 and 2024.

“The US decision to impose tariffs at this time to pressure China may be counterproductive and China will definitely respond strongly,” said Wang Dong, executive director of the Institute for Global Understanding and Cooperation at Peking University.

Earlier retaliatory tariffs between the two countries during Trump’s first term sparked a full-blown trade war, roiling financial markets and hurting global growth.

This time, Trump’s first round of fentanyl-related import tariffs on Feb. 4 were quickly met with retaliation from Beijing.

China has announced a series of broad countermeasures targeting US businesses including Google and the owner of the Calvin Klein fashion brand, along with new import tariffs on US coal, oil and some types of cars.

China's Commerce Ministry said on February 1 that it hopes to return to negotiations with the US as soon as possible, warning that failure to do so could lead to retaliation./.

Source: VTV