March 10 (UPI) — Retaliatory tariffs imposed by China on U.S. farm products took effect Monday.
The Chinese tariffs are a 15% levy on American products such as corn, wheat and chicken, and 10% on fruit, soybeans, beef and pork. China has also announced it would block 15 American companies from purchasing Chinese products unless it granted them special permission. Another 10 U.S. companies have been blocked from doing business in China altogether. Beijing also said levies would be placed on American coal, natural gas and farm equipment following the 10% tariffs imposed by the United States in February.
The tariffs are in response to 10% tariffs President Donald Trump first enacted on nearly $440 billion worth of Chinese goods imported by the U.S. every year in early February and then raised the levies to 20% last week.
He has said the moves would help the United States rebuild its industrial sector while pressuring China to help reduce the movement of fentanyl into the U.S.
The average tariff on Chinese goods imported by the U.S. is now 39%, compared to the 3% tariffs collected against most other countries. Trump also imposed 25% tariffs on Canada and Mexico Tuesday, but has since suspended most of those levies.
Beijing had announced its tariffs last week, shortly after Trump announced the raise from 10% to 20%.
Nonetheless, China faces more of an impact from a trade war as it purchases less from the United States than the U.S. imports from there. The Chinese trade surplus with the U.S. approached $300 billion last year.
Chinese commerce minister Wang Wentao said last week that he hoped communication with American counterparts over the issue could begin “as soon as possible.”
