China imposes up to 15% tariffs on key US farm exports, including soy, beef in retaliatory measure

This move is the latest escalation in the trade tensions between the US and China, with Trump’s tariffs on Chinese products taking effect earlier on Tuesday, according to AP.

A market that cannot be replaced

China purchased $29.25 billion worth of US agricultural goods in 2024, a 14% drop from the previous year, following a 20% decline in 2023. The decline began in 2018 when Beijing imposed tariffs of up to 25% on key US farm exports like soybeans, beef, pork, wheat, corn, and sorghum in response to Trump’s tariffs on Chinese goods.

Since then, China has diversified its suppliers, increasing imports from Brazil and focusing on boosting its own food production. However, the US remains China’s largest agricultural supplier. American farm leaders and traders still see China as an essential market, even as they seek alternative buyers.

Soybeans: Brazil gains ground

Soybeans are the top US farm export to China, with shipments worth $12.8 billion in 2024. However, China has been turning to Brazil for cheaper and more abundant supplies, reducing its dependence on American soybeans.

According to Chinese customs data, the US share of China’s soybean market dropped from 40% in 2016 to just 21% in 2024, reported by Reuters.

Corn: US loses dominance

The US was China’s top corn supplier for decades, but that changed after Beijing approved Brazilian imports in 2022. China’s purchases of US corn fell sharply from $2.6 billion in 2023 to just $561 million in 2024, as domestic production increased. While China’s demand for corn has grown due to its large livestock industry, Brazil has now overtaken the US as China’s primary supplier.

Meat and Offal: Declining sales

China is a major buyer of US meat products, including chicken legs, pork ears, and offal—cuts that are less popular in America. In 2024, China imported $2.54 billion worth of these products from the US, down from $4.11 billion in 2021.

Cotton: Demand slows

China remains a key market for US cotton, accounting for about a quarter of American exports by value. However, due to economic challenges affecting its textile industry, China’s imports of US cotton fell slightly to $1.49 billion in 2024, compared to $1.57 billion the year before.

Sorghum: Competition grows

China’s purchases of U.S. sorghum, a key substitute for corn in animal feed, rose slightly to $1.73 billion in 2024 from $1.52 billion in 2014.

However, China is looking to reduce its dependence on US sorghum as it turns to suppliers in Australia, Argentina, and Brazil.

Wheat: Imports see temporary rise

China imported nearly $600 million worth of US wheat in 2024, the highest in three years. However, with ample domestic wheat supply, China’s overall wheat imports have declined in recent months, which may impact future US shipments.

(with inputs from agencies)