Starting Monday, Chinese tariffs of up to 15% on various U.S. agricultural products will take effect, potentially intensifying trade tensions between the world’s two largest economies.
The newly announced tariffs will impact a broad range of commodities, including beef, poultry, and grains. In addition to these levies, Beijing has also decided to fully suspend soybean imports from three U.S. entities and has halted purchases of American logs.
This move by Beijing follows the Trump administration’s decision to double a blanket tariff on all Chinese exports. China’s retaliatory measures specifically target products that the country can procure from alternative suppliers, minimizing the risk of economic disruption at home.
Chinese officials have expressed confidence in their ability to manage trade frictions with President Donald Trump. Last week, Finance Minister Lan Fo’an stated during an annual legislative session in Beijing that the central government possesses sufficient fiscal policy tools and capacity to address potential domestic and external challenges.
China and US Trade WarChina’s response appears to be measured, avoiding direct escalation while still leaving space for diplomatic negotiations. Despite Trump having signaled a willingness to engage in discussions with Chinese President Xi Jinping, no official talks have been announced so far.
The implementation of these tariffs coincides with the National People’s Congress in Beijing, where Chinese lawmakers have gathered. During last week’s session, Premier Li Qiang set an economic growth target of approximately 5%, an ambitious goal given the prevailing trade uncertainties, the ongoing property crisis, and deflationary pressures affecting the economy.
On Sunday, official data revealed that consumer inflation had dropped more than anticipated, slipping below zero for the first time in 13 months.
Core CPI, which excludes volatile components such as food and energy, declined by 0.1%—marking the first contraction since 2021 and only the second occurrence in over 15 years.
To stimulate spending and counteract the impact of U.S. tariffs, Premier Li also announced that China would be increasing its general budget deficit to its highest level in more than three decades.
