How China is targeting US agriculture with retaliatory tariffs as Trump begins trade war

Day after US President Donald Trump confirmed his decision to implement tariffs, China and Canada announced retaliatory measures against America.

Trump's new tariffs include a 25 per cent levy on most imports from Canada and Mexico, with an additional 10 per cent tariff on Canadian energy exports. Moreover, he also increased tariffs on Chinese goods from 10 per cent to 20 per cent.

China on Tuesday (March 4) responded by imposing additional tariffs of 10-15 per cent on a variety of US agricultural imports.

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China's finance ministry said that the tariffs would be imposed starting next week.

It further said that an additional 15 per tariff would be imposed on chicken, wheat, corn, and cotton, with further 10 per cent tariffs on sorghum, soy beans, pork, beef, aquatic products, fruits, vegetables, and dairy products.

Meanwhile, Canadian Prime Minister Justin Trudeau said that his country would impose immediate 25 per cent tariffs on over USD 20 billion worth of US imports.

Further, he said to impose tariffs on an additional USD 86 billion worth of products in 21 days.

"Our tariffs will remain in place until the U.S. trade action is withdrawn," Trudeau said, adding that tariffs will disrupt an incredibly successful trading relationship.

Moreover, Mexico’s President Claudia Sheinbaum was also expected to announce her response on Tuesday morning.

On Monday, Trump declared at the White House that Mexico and Canada "will have to install a tariff system." The companies must construct their manufacturing facilities, including car plants, within U.S. territory because this option eliminates all tariffs.

He said that starting at 12:01 a.m. EST on Tuesday (0501 GMT) US Customs and Border Protection will implement a 25% duty on Canadian and Mexican goods, and Canadian energy exports will be subject to a 10% tariff. These new Chinese export duties will be enacted at precisely the same moment.

Stocks suffered a rapid market decline when Trump issued his announcement, and bond yield rates decreased. Market participants panicked because they foresaw economic challenges for Mexico and Canada, which led to a depreciation of their national currencies.

Mexico hits back

Mexico President Claudia Sheinbaum sais that the country will hit back at US President Donald Trump's tariffs with retaliatory duties of its own.

There was "no reason or justification" for Trump's decision, she said at her morning news conference.

(With inputs from agencies)