China Retaliates To Trump's Tariffs As U.S Farmers Expect For Worse

China Retaliates To Trump’s Tariffs As U.S Farmers Expect For Worse

American enterprises seeking to sell into China’s massive market have recently suffered a significant setback.

A 34% increase in the price of all US goods entering the nation will drive some out altogether.

This is especially detrimental for American agricultural farmers. They already had 10 or 15% taxes on their produce entering China in reaction to Trump’s previous wave of tariffs.

If you add 34% on top of that, it is likely to price the majority of them out.

#VantageOnFirstpost: China has announced 34% reciprocal tariffs on the US in response to Donald Trump's moves this week. Canada too has imposed a 25% tariff on most US cars in response to Trump's auto tariffs. How are other countries responding to Trump's tariffs? | @Palkisu pic.twitter.com/wVnRBHSQog
— Firstpost (@firstpost) April 4, 2025

Beijing does not appear to be concerned about seeking elsewhere for additional chicken, pig, and sorghum, even though it is well aware that it is whacking the US president square on his home turf.

The difficulty is that supply chains have become so globalized that components for any given product can be supplied from all over the world.

As a result, if the ripples of economic misery spread from country to country, it could have potentially disastrous effects on global trade.

Most troubling is that the world’s two largest economies are currently at odds, with neither showing signs of backing down. Just consider the timing of Beijing’s statement.

China announced additional tariffs of 34% on US goods, the most serious escalation in a trade war with President Donald Trump that has fed fears of a recession and triggered a global stock market rout https://t.co/OpAPOrMxet pic.twitter.com/QaZQJ8LDIx
— Reuters (@Reuters) April 4, 2025

The Chinese government announced its promised “resolute countermeasures” to Trump’s increased tariffs in a written announcement from the finance ministry at 18:00 local time (10:00 GMT) on a Friday night, which also happens to be a national holiday.

The timing could mean several things.

1. It wanted to somewhat bury the news at home, so as to not spook people too much.
2. It simply made the announcement as soon as its own calibrations had been finalised.
3. Beijing had given up on the hope of using the small window it had before Trump’s 54% tariffs on Chinese goods took effect next week to do a deal. So, the government just decided to let it rip.

If the last of these reasons is correct, it is bad news for the global economy since it could indicate that reaching an agreement amongst the world’s giants will be more difficult than many had hoped.

Another predictor of President Xi’s reaction to President Trump’s tariffs is what he was doing when they were announced.

Other governments may have been glued to the television, hoping to avoid the worst of Washington.

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Xi and the other six members of the Politburo Standing Committee were out planting trees to raise awareness about the need to combat deforestation.

There is still an opportunity for the United States and China to reach an agreement, but the rhetoric does not appear to be headed in that direction.

Another option is for China to expand its trade with other countries, particularly Western nations who were once considered close allies of the United States, and for these new avenues to effectively take America out of the picture.

Again, this would harm not only US businesses but also US consumers, who will already be paying higher costs due to Trump’s tariffs.

China Retaliates To Trump’s Tariffs As U.S Farmers Expect For Worse