China targets US agri, food products in response to Trump tariff threats

Trade tensions escalate amid US Tariffs on China, Canada, and Mexico, which are set to take effect on March 4

China is preparing strong countermeasures in response to the United States' plan to impose an additional 10 per cent tariff on Chinese goods, citing fentanyl-related concerns. According to a report by the Global Times, these measures could include both tariff and non-tariff actions, with US agricultural and food products likely to be targeted.

 

"If the US insists on imposing unilateral tariffs and formally announces relevant measures, China will definitely implement strong and effective countermeasures," the Global Times quotes an anonymous source familiar with the matter.

 

US tariff to take effect from March 4

The US tariff plan, announced by President Donald Trump, is set to take effect on March 4. Trump's plan includes increased tariffs on Canadian and Mexican imports, with China’s levy doubling from 10 per cent to 20 per cent.

 

 

China condemns fentanyl-linked tariff justification

Multiple Chinese ministries swiftly opposed the move. The Ministry of Commerce (MOFCOM) criticised the US justification, stating that China is one of the strictest nations in the world when it comes to drug control and international cooperation. The official warned that targeting other nations would not address US' internal drug issues but would instead harm businesses and consumers in the US while disrupting global supply chains.

 

MOFCOM urged the US to avoid repeating past mistakes and to resolve disputes through fair negotiations, warning that if Washington moves ahead with the tariffs, "China will take all necessary countermeasures to safeguard its legitimate rights and interests."

 

Chinese Foreign Ministry spokesperson Lin Jian also denounced the proposed tariffs, accusing the US of using fentanyl as a tool to pressure, coerce, and threaten China. Jian warned that such tactics would backfire and undermine bilateral cooperation on drug control.

 

The Chinese Embassy in the US added that the tariff increase violates World Trade Organisation (WTO) regulations, calling it an act of "unilateralism and trade protectionism." The embassy also stressed that the US should focus on "reducing domestic drug demand and strengthening law enforcement" rather than blaming external factors.

 

Economic impact of Trump's tariff war

Trump’s proposed tariffs would be among the most extensive of his administration, affecting approximately $1.5 trillion in annual imports, an earlier report by Bloomberg stated.

 

Canada and Mexico, the US' largest trading partners, would see a 25 per cent tariff on all imports except Canadian energy, which would be taxed at 10 per cent.

 

Trump has framed the tariffs as a means to pressure neighbouring countries into tightening border security and controlling drug trafficking, particularly fentanyl.

 

While the tariff measures could be postponed -- the Canada and Mexico levies have already faced delays -- any respite may be temporary.

 

However, the economic consequences for the US could be severe. Analysts warn that the tariffs may reignite inflation, disrupt North American supply chains, and prompt legal challenges under the United States-Mexico-Canada Agreement (USMCA), a trade deal Trump himself renegotiated during his first term.

 

The US economy, already showing signs of strain. Stock markets and cryptocurrencies have dipped, consumer confidence has declined, and inflation remains persistent. A fresh round of trade tensions could trigger a wider market sell-off.

 

Retaliation from Canada and China

Canada has announced plans to impose immediate retaliatory tariffs on C$30 billion ($20.75 billion) worth of US goods, with an additional C$125 billion ($86.4 billion) in tariffs expected within weeks.

 

China has signalled that it will not hesitate to respond. While details of Beijing’s retaliation remain under discussion, experts predict that US agricultural and food exports will likely face higher tariffs and regulatory hurdles.

 

Mexico has not announced any countermeasures.