China Suspends Import of US Logs and Soybeans... Pulls Out 'Non-Tariff Card'

The Chinese government has pulled out a 'non-tariff retaliation card' against the Donald Trump administration's '10+10% tariff increase.' They announced the suspension of soybean imports from three US companies and US logs.

On the 4th, China's General Administration of Customs announced in an afternoon notice that it had suspended the soybean export qualifications of three major US grain companies: CHS, Louis Dreyfus Company, and EGT.

Regarding the background of this measure, the Customs Administration explained, "Ergot and seed-coated soybeans were detected among imported US soybeans," adding that it was "to protect Chinese consumers' health and ensure the safety of imported food."

In a separate announcement, they stated, "Quarantine forest pests such as bark beetles and longhorn beetles were found in US logs," and announced that "from today, imports of US logs will also be suspended."

This appears to be a response to US President Donald Trump raising the tariff rate on Chinese products from the existing 10% to 20% on the same day.

In relation to this, China announced that as part of 'retaliatory tariffs,' it will impose 10-15% tariffs on US-origin agricultural, livestock, and fishery products starting from the 10th.

They explained that tariffs on a total of 29 items including US chicken, wheat, corn, and cotton will be increased by 15%, while tariffs on a total of 711 items including sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products will be raised by 10%.

The suspension of US soybean and log imports announced today is interpreted as China pulling out another 'non-tariff card' against the US.

While the US cited the influx of the narcotic painkiller 'fentanyl' into the US as a reason for tariffs against China and others, the Chinese Foreign Ministry countered at a press conference today, saying, "China implements the strongest anti-drug policies in the world."

They also warned, "China has never succumbed to harassment or coercion," and that "putting extreme pressure on China is a miscalculation and a mistake."

However, China also showed signs of adjusting its response level by demanding dialogue with the US instead of escalating to a full-scale trade war.

Chinese Commerce Ministry spokesperson He Yadong said in a statement this morning that regarding the repeated US tariff increases, "We express strong dissatisfaction and firm opposition, and will take countermeasures to firmly defend our rights and interests," but also added, "We hope the US will return to the right track of resolving differences through equal dialogue by handling the issue objectively and rationally," not letting go of the thread of dialogue.

Lee Bo-bae, guest reporter for Hankyung.com newsinfo@hankyung.com