China targets US agricultural products over Trump tariff threat: Global Times

China has American agricultural exports in its cross hairs as it prepares countermeasures against fresh US import tariffs, China's state-backed Global Times reported, raising the stakes in an escalating trade war between the world's top two economies.

US President Donald Trump last week threatened China with the extra 10% duty set to take effect on Tuesday, resulting in a cumulative 20% tariff, and accused Beijing of not doing enough to halt the flow of fentanyl into America, which China said was tantamount to “blackmail”.

“China is studying and formulating relevant countermeasures in response to the US threat of imposing an additional 10% tariff on Chinese products under the pretext of fentanyl,” Global Times reported on Monday, citing an anonymous source.

“The countermeasures will probably include tariffs and a series of non-tariff measures, and US agricultural and food products will most likely be listed,” the report added.

China's commerce ministry and the US embassy in Beijing did not immediately respond to requests for comment.

The US has long been vulnerable to China using its agricultural exports as a punching bag in times of trade tensions.

China remains the biggest market for US agriculture products despite a decline in imports since 2018 after Beijing slapped tariffs of up to 25% on soybeans, beef, pork, wheat, corn and sorghum in retaliation for duties on Chinese goods imposed by Trump.

The world's top agricultural importer and second-largest economy brought in $29.25bn (R544.78bn) worth of US agriculture products in 2024, a 14% drop from a year earlier, extending a 20% decline seen in 2023.

Global Times, which is owned by the newspaper of the governing Communist Party, People's Daily, was first to report the steps China planned to take in response to the EU slapping tariffs on Chinese electric vehicles last year.

Trump's announcement left Beijing with less than a week to come up with countermeasures or strike a deal. The proposed extra levies also coincide with the start to China's annual meeting of parliament, a political set piece event at which Beijing is expected to roll out its 2025 economic priorities.

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

“A China-US trade war is not inevitable, but Trump's decision to impose tariffs now is a bad decision,” said Wang Dong, executive director of the Institute for Global Co-operation and Understanding at Peking University.

“Trump and his advisers may think imposing tariffs at this time is to put pressure on China, sending a signal, but this will backfire and China will inevitably respond strongly.”

Tit-for-tat tariffs between the two countries during Trump's first term set off a full-blown trade war, upending financial markets and hurting global growth.

This time, Trump's first salvo of fentanyl-related import duties on February 4 was met by a quick retaliatory move by Beijing.

China announced a series of wide ranging countermeasures targeting US businesses including Google and the owner of fashion brand Calvin Klein, and fresh import duties on US coal, oil and some cars.

China's commerce ministry said on Friday it hoped to return to negotiations with the US as soon as possible, warning failure to do so could trigger retaliation.

State media said top Chinese Communist Party officials met the same day and vowed to take steps to prevent any external shocks to China's economy.

The politburo meeting comes a week after the White House released an America First investment memorandum which placed China on a list of “foreign adversaries”.

Reuters