China has swiftly retaliated against the latest United States tariffs, announcing increased import levies on $21 billion worth of American agricultural and food products.
The move escalates tensions between the world’s two largest economies, pushing them closer to a full-scale trade war.
The Chinese countermeasures coincide with the enforcement of a new 10% tariff imposed by US President Donald Trump, bringing the total duty on affected goods to 20%.
China has dismissed the move as “blackmail,” asserting that its anti-drug policies are among the strictest in the world.
“We urge the US to immediately stop its wrongful actions and create conditions for solving problems through cooperation,” China’s Ministry of Commerce said in a statement.
Alongside the tariff hikes, Beijing imposed export and investment restrictions on 25 US firms, citing national security concerns.
However, unlike its response to the Trump administration’s February 4 tariffs, China refrained from targeting major American brands.
Analysts believe China is still open to negotiations, and by keeping its tariff increases below 20%, Beijing appears to be leaving space for diplomatic talks with the Trump administration.
“A prolonged conflict could still be avoided if Trump and Chinese President Xi Jinping reach an agreement,” said Evan Pay, an agriculture analyst at Trivium China.
The ongoing trade tensions between the US and China have sparked concerns about the impact on global trade and economic growth.
The two countries have been engaged in a trade war since 2022, with both sides imposing tariffs on each other’s goods.
The dispute has led to higher prices for consumers and disrupted global supply chains.
