Earlier post on this is here:
Adding more now:
China is preparing countermeasures against new U.S. tariffs set to take effect on Tuesday, with American agricultural products likely to be among the targets, according to the Global Times.
- China is expected to respond with a mix of additional tariffs and regulatory restrictions on U.S. goods, particularly in the agriculture and food sectors.
- The move follows former U.S. President Donald Trump’s announcement of an extra 10% tariff on Chinese imports, citing China’s handling of fentanyl exports as a key concern.
- The U.S. agricultural sector has been vulnerable to Chinese trade retaliation in past disputes. China remains the largest market for U.S. agricultural exports, but imports have declined sharply since 2018 due to previous trade conflicts.
- The timing coincides with China’s annual parliamentary meeting, where economic priorities for 2025 are expected to be announced. Analysts believe China may still seek negotiations, but with no trade talks scheduled, the chances of de-escalation appear slim.
- Some analysts argue that Trump’s tariff move is a strategic pressure tactic that could backfire, pushing China to strongly retaliate rather than concede.
This article was written by Eamonn Sheridan at www.forexlive.com.
