"China Considering Retaliatory Tariffs on Agricultural Products and Food in Response to US Tariffs"

In Response to Trump's Implementation of 20% Additional Tariffs

China is the Largest Importer of US Soybeans and Other Agricultural Products

China is reportedly considering retaliatory measures against US agricultural products and food in response to the Trump administration's additional tariffs.

According to Bloomberg on the 3rd (local time), citing the Chinese government-backed media Global Times, the Chinese government is considering retaliatory measures against US agricultural products and food in response to US tariffs. As a result, the price of Chinese soybean meal, used for food and livestock feed, has risen nearly 3% in three weeks.

China is the world's largest importer of soybeans, which are used for cooking oil and livestock feed. If China stops importing US soybeans, Chinese soybean prices could rise further.

The media outlet stated that China's response is likely to include both tariff and non-tariff measures.

Last week, Trump announced he would double tariffs on China to 20%. He also said that tariffs on Canada and Mexico would be implemented as scheduled starting on the 4th.

In early last month, China announced it would impose tariffs on various US products including metals, liquefied natural gas, and agricultural machinery in retaliation for President Trump's initial 10% tariff, but the overall import volume was not large. Tariffs on crops, the largest import item, were not mentioned.

China's soybean market has tightened as commercial soybean crushers in China have stopped importing US soybeans due to concerns about trade tensions between the two countries. Chinese customs has delayed the clearance of some shipments.

The annual meeting of China's National People's Congress opens on Wednesday this week, and there is a possibility that retaliatory measures against US tariffs will be announced along with economic stimulus measures.

During Trump's first term, the Chinese government imposed massive tariffs on US agricultural products, including soybeans, in response to his tariffs. This resulted in an approximately 80% drop in US soybean sales to China. Since then, China has primarily purchased Brazilian soybeans.

Nevertheless, the US remains a major grain supplier to China, including wheat and corn.

As of 2:20 PM Singapore time, soybean meal futures on the Dalian Commodity Exchange rose 2.9% to 3,016 yuan per ton. Chicago soybean futures rose 0.4%, corn 0.2%, and wheat 1.1%.

Kim Jung-a, Contributing Writer kja@hankyung.com