US-China Trade War: China responds with additional tariffs up to 15% on U.S. goods

Get the latest updates on the US-China trade war as China imposes additional tariffs of up to 15% on U.S. goods. Discover the impact on U.S. exports, affected industries, and global trade trends.

Mar 5, 2025 0 2.2k

US-China Trade War: China responds with additional tariffs up to 15% on U.S. goods

In the ongoing economic battle between the United States and China, tensions have escalated yet again with China's latest move to impose additional tariffs of up to 15% on a range of U.S. goods. The tit-for-tat trade war between the two economic powerhouses has been ongoing for several years, with each country imposing tariffs on billions of dollars’ worth of each other's goods. The move comes as a direct response to the U.S. decision to raise tariffs on Chinese imports, signaling an intensification of the trade war between the two economic giants. The article aims to provide an informative overview of the recent development in the US-China trade war, highlighting China's response with additional tariffs on US goods, with a key focus on the US export data and China import data.

China's Retaliatory Tariffs Shake Up US Trade Relations

The two largest economies in the world moved closer to a full-scale trade war on Tuesday when China rapidly responded to new U.S. tariffs by announcing 10%–15% increases to import taxes covering a variety of American agricultural and food products. On national security grounds, China also imposed export and investment restrictions on 25 U.S. companies, although it did not target any well-known companies, unlike when it responded to the tariffs imposed by the Trump administration on February 4. China targeted ten of these 25 American companies for selling weapons to Taiwan, which it claims is its territory.

As the additional 10% tax that U.S. President Donald Trump threatened China with last week went into effect on March 4, China's most recent retaliatory tariffs arrived in reaction to what the White House views as Chinese passivity over drug flows. The duties totaled 20%.

How it started: US Imposed Tariffs on Chinese Goods

It all started when the United States, under the Trump administration, imposed tariffs on billions of dollars’ worth of Chinese goods to address what it deemed as unfair trade practices by China. The tariffs targeted a wide range of Chinese products, from electronics to machinery to textiles, and were met with swift retaliation by China.

China’s Recent Tariff Response

In response to the U.S. tariffs, China imposed its own set of tariffs on U.S. goods, targeting industries such as agriculture, automotive, and energy. The trade war quickly escalated, with both countries imposing further tariffs and restrictions on each other's exports. The most recent development in the trade war saw China announcing additional tariffs of up to 15% on a variety of US goods. This move is seen as a direct response to the US's continued pressure on China, particularly in areas such as technology and intellectual property rights.

The new tariffs will affect a wide range of products, including agricultural goods, textiles, and machinery. The Chinese government has stated that these tariffs are necessary to protect its industries and retaliate against what it sees as unfair practices by the U.S.

Affected U.S. Products and Tariff Rates Due to China’s Tariffs

Important US exports like cotton, wheat, corn, and chicken will be subject to Chinese tariffs. The continuing trade battle between the two biggest economies in the world has escalated further with this decision, and the global trade will see further change in the US import data and export data.

It stated that an additional 15% duty would be applied to imports of cotton, wheat, corn, cattle, pork, chicken, Sorghum, and soybeans produced in the United States. Fish, fruit, vegetables, and dairy goods will all see a 10% increase in tariffs.

China’s Tariffs on us products

15% Tariff

Chicken
Wheat
Corn
Cotton
Sorghum
Soybeans
Pork
Beef
Coal
LNG

10% Tariff

Seafood
Fruits
Dairy Products
Vegetables
Crude Oil

US Exports to China of the Tariff-Imposed Goods in 2024

Chicken (HS code 0207): $351.22 million
Wheat (HS code 1001): $559.90 million
Corn (HS code 1005): $330.93 million
Cotton (HS code 52): $1.49 billion
Sorghum (HS code 1007): $1.26 billion
Soybeans (HS code 1201): $12.76 billion
Pork (0203): $346.57 million
Beef (HS code 0201): $1.18 billion
Coal (HS code 2701): $1.52 billion
LNG (2711): $1.69 billion
Seafood (HS code 03): $918.10 million
Fruits (HS code 08): $950.47 million
Dairy Products (HS code 04): $298.64 million
Vegetables (HS code 07): $59.42 million
Crude Oil (HS code 2709): $6.15 billion

Search LIve Data by HS Code: https://www.tradeimex.in/search-live-data

Impact on U.S. Agricultural Exports

The U.S. exported approximately $26 billion worth of agricultural products to China in 2024. The newly imposed tariffs are expected to affect about 60% of these exports, potentially reducing U.S. agricultural exports to China by an estimated $15.6 billion.

Alternative Suppliers for China

China has been diversifying its import sources in anticipation of trade tensions. For instance, in 2024, China increased its soybean imports from Brazil by 35%, totaling 70 million metric tons, compared to 52 million metric tons in 2023, as per Brazil export data. Similarly, China’s corn imports from Argentina rose by 25% in 2024, reaching 25 million metric tons, up from 20 million metric tons in 2023, as per Argentina customs export data.

Economic Implications:

For U.S. Farmers

The additional tariffs are expected to decrease the competitiveness of U.S. agricultural products in the Chinese market, leading to potential revenue losses and increased stockpiles.
Farmers may need to seek alternative markets or reduce production, impacting rural economies.

For Chinese Consumers

While China has alternative suppliers, a sudden shift in sourcing could lead to short-term supply shortages and increased prices for certain commodities.
Inflationary pressures may arise if the cost of imports increases, affecting consumer purchasing power.

Global Market Reactions

Global financial markets have reacted to the escalating trade tensions. The S&P 500 experienced its worst day of the year, declining by 2.5%, while commodities like soybeans and corn saw price decreases of 3% and 2.8%, respectively. Conversely, Brazilian and Argentine agricultural sectors have seen increased investments, with their stock markets' agricultural indices rising by 4% and 3.5%, respectively.

Details of China's Tariffs on US Goods

Agricultural Products: An additional 15% tariff will be imposed on major U.S. agricultural exports, including chicken, pork, soy, and beef. Other affected items include wheat, corn, cotton, seafood, fruits, and dairy products.
Energy Products: A 15% tariff will be applied to U.S. coal and liquefied natural gas (LNG) imports, while U.S. crude oil will face an additional 10% tariff and affect the US crude oil import data.
Manufactured Goods: Certain U.S. agricultural machinery, large-displacement vehicles, and pickup trucks will be subjected to an additional 10% tariff.

Impact on US Exports

In 2024, China imported approximately $163 billion worth of goods from the U.S., including $3.25 billion in crude oil, $651.65 million in LNG, and $520.99 million in coal. The new tariffs are expected to affect these sectors significantly.

China's Diversification Efforts

To mitigate the impact of reduced U.S. imports, China has been increasing purchases from other countries, such as Brazil and Argentina, particularly for agricultural products like soybeans and corn.

Additional Measures

Due to national security reasons, China included 10 US companies, including aerospace & defense, in its "unreliable entity list."

Escalating Trade War between China and the United States

China has some of the strictest anti-drug laws in the world and has accused the United States of fentanyl blackmail. The tit-for-tat retaliatory tariffs threaten to turn into a full-scale trade war between the two economic powers, despite Beijing's wish to reach a truce with the Trump administration, according to analysts. Existing taxes on thousands of Chinese goods have been increased by the new U.S. tariffs.

Effects of US-China Tariff Hikes on Consumer Electronics & Agricultural Products

Last year, former President Joe Biden doubled taxes on Chinese semiconductors to 50% and quadrupled duties on Chinese electric vehicles to nearly 100%, among other drastic increases in U.S. tariffs that disproportionately affected certain of these industries.
Smartphones, laptops, video game consoles, smartwatches, speakers, and Bluetooth gadgets are among the major Chinese consumer electronics imports that were previously unaffected by the 20% duty.
Following the deadline, China swiftly responded, announcing in a statement that it would impose an additional 10% charge on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables, and dairy imports starting on March 10 and an additional 15% tariff on U.S. chicken, wheat, corn, and cotton.

China's Bold Move Against American Businesses

China declared on Tuesday that it would limit shipments to 15 American businesses and apply extra tariffs of up to 15% on certain U.S. goods starting on March 10. Just as further U.S. tariffs on Chinese goods went into effect, China's Ministry of Finance and Ministry of Commerce retaliated.
China's retaliatory actions following the initial wave of increased U.S. tariffs in February included increasing levies on specific U.S. energy imports and placing two U.S. corporations on a list of untrustworthy entities that might limit their ability to conduct business in the Asian nation.

US-China Bilateral Trade in the Last 10 Years: Annual China-US Trade Data

US-China Bilateral Trade

Year of Trade	US Imports from China ($)	US Exports to China ($)
2014	$486.29 billion	$123.67 billion
2015	$504.04 billion	$115.87 billion
2016	$481.36 billion	$115.59 billion
2017	$525.74 billion	$129.99 billion
2018	$562.70 billion	$120.28 billion
2019	$470.95 billion	$106.44 billion
2020	$456.44 billion	$124.48 billion
2021	$540.07 billion	$151.44 billion
2022	$575.71 billion	$153.83 billion
2023	$448.03 billion	$147.80 billion
2024	$462.63 billion	$143.54 billion

Forecasting the Impact on US-China Tariffs & Retaliatory Measures

Ting Lu, the chief China economist at Nomura, forecasts that the average total U.S. tariff rate on Chinese exports will reach 33%, up from about 13% before the start of U.S. President Donald Trump's most recent term in January. According to a source cited by China's state-run Global Times, China was thinking of imposing retaliatory tariffs on American agricultural goods on Monday. As of 2023, the highest percentage of U.S. goods sent to China, 1.2%, or $22.3 billion, are agricultural items like soybeans. According to the study, oil and gas came in second by share at 1%, or $19.3 billion. Third place went to pharmaceuticals, with a 0.8% share and $15.6 billion.

Impact of US-China Trade War on the Global Economy

The ongoing trade war between the U.S. and China has significantly impacted the global economy. Both countries are major players in international trade, and disruptions to their trade relationships have ripple effects across the world. The additional tariffs imposed by China are likely to strain relations between the two countries further and could lead to even more retaliatory measures from the U.S. This uncertainty is causing concern among businesses and investors, who are wary of the potential impact on global markets.

Canada, Mexico, & China quickly retaliated against Trump's trade war with fresh tariffs

On Tuesday, President Donald Trump began a trade war against the United States' three largest trading partners.
Mexico, Canada, and China immediately retaliated, putting financial markets into a spiral as the United States faced the possibility of renewed inflation and crippling corporate uncertainty.
Trump reduced the levy on Canadian energy to 10% but put 25% tariffs, on Canadian and Mexican goods shortly after midnight. Additionally, Trump quadrupled the 20% tariff he imposed on Chinese goods last month.
Following President Trump's 25% import tariffs, Canada and Mexico are preparing retaliation tariffs.
Mexican President Sheinbaum also promised retribution after Canadian Prime Minister Trudeau proposed 25% tariffs on $106 billion worth of US imports.
Justin Trudeau, the prime minister of Canada, declared that his nation would impose tariffs on more than $100 billion in U.S. imports over 21 days.
According to Mexican President Claudia Sheinbaum, Mexico would impose its retaliatory tariffs in response to the new duties.
Mexico's target products will be revealed on Sunday, according to Sheinbaum. Mexico may still be hoping to defuse Trump's trade battle, as seen by the postponement.
Major economies are involved in the trade war, which might destabilize the global economy and raise prices for US consumers.

Conclusion and Final Thoughts

As the US-China trade war continues to escalate, the latest round of tariffs imposed by China on US goods is a clear indication of the growing tensions between the two economic powerhouses. The long-term consequences of this trade war remain uncertain, but one thing is clear: the global economy is feeling the effects of this ongoing trade war.

China's retaliatory tariffs are poised to have substantial effects on U.S. exports, particularly in the agricultural and energy sectors. The ongoing trade dispute is contributing to global economic uncertainty, affecting global trade markets and trade balances. Both nations may need to seek diplomatic solutions to prevent further economic disruptions.

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