China is preparing countermeasures against the U.S., including potential tariffs and non-tariff measures targeting American agricultural exports, in response to President Donald Trump’s threat of additional 10% tariffs on Chinese goods. The state-backed Global Times reported on Monday that U.S. agricultural and food products are likely to be a focus of China’s retaliation, escalating trade tensions between the world’s two largest economies.
Trump’s latest tariff threat, set to take effect on Tuesday, would bring the cumulative duty on Chinese imports to 20%. The U.S. president accused China of failing to curb the flow of fentanyl into America, a claim Beijing dismissed as “blackmail.”
“China is studying and formulating relevant countermeasures in response to the U.S. threat,” the Global Times reported, citing an anonymous source. The report highlighted that U.S. agricultural products, such as soybeans, meat, and grains, are vulnerable targets due to their significance in bilateral trade.
China is the largest market for U.S. agricultural exports, and the sector has historically been a casualty of trade disputes. In 2024, China imported $29.25 billion worth of U.S. agricultural products, a 14% decline from the previous year. Analysts warn that further tariffs could significantly impact U.S. farmers and exporters, despite efforts to diversify markets since the 2018 trade war.
The Global Times report triggered a surge in China’s soymeal and rapeseed meal futures, which rose 2.5% amid concerns over supply disruptions. The soymeal contract on the Dalian Commodities Exchange hit its highest level since September 2024.
While Beijing hopes to negotiate a truce with the Trump administration, analysts say the likelihood of a resolution is fading. Wang Dong, executive director of the Institute for Global Cooperation and Understanding at Peking University, warned that Trump’s tariffs could “backfire,” prompting a strong response from China.
The escalating trade tensions coincide with China’s annual parliamentary meeting, where the government is expected to outline its 2025 economic priorities. State media reported that top Communist Party officials recently met to discuss measures to shield the economy from external shocks.
This latest standoff follows a series of tit-for-tat measures between the two nations. In February, China imposed countermeasures on U.S. businesses, including Google and Calvin Klein, and levied fresh tariffs on U.S. coal, oil, and automobiles.
As the U.S. and China edge closer to another trade war, the global economy faces renewed uncertainty, with agricultural markets and supply chains at the forefront of the conflict.