REUTERS
China on Wednesday announced it would hike planned tariffs on U.S. imports to 84%, matching President Donald Trump's latest duties on the country as relations between the two superpowers sinks to a new low.
This new levy adds to the 10-15% tariffs China imposed in early March on approximately $21 billion worth of American agricultural and food products, threatening to nearly sever the tens of billions in agricultural trade between the two nations.
What follows is a summary of that trade:
'IRREPLACEABLE' MARKET
U.S. agricultural exports to China declined sharply during the first trade war after Beijing slapped tariffs of up to 25% on soybeans, beef, pork, wheat, corn and sorghum in retaliation for duties on Chinese goods imposed by Trump.
Beijing has diversified its agricultural imports since then, ramping up purchases from suppliers led by Brazil, and boosting domestic production in pursuit of greater food security.
As a result, China is now wielding the billions it still spends each year on U.S. agricultural products as a weapon in the escalating trade war with less risk to its own food security.
China remains the largest export market for American farmers. U.S. farm leaders and traders have described China as "irreplaceable" even as they look for alternative markets.
China imported $29.25 billion worth of U.S. agricultural products in 2024, a 14% decline from the previous year, extending a 20% drop in 2023.
SOYBEANS
About half of U.S. soybeans, the country's largest agricultural export to China, were shipped to the Asian nation in 2024, totalling $12.8 billion in trade, according to U.S. data.
However, China has increasingly relied on cheaper and abundant Brazilian soybeans to reduce its dependence on U.S. supplies. This has resulted in the U.S. market share in China dropping to 21% in 2024 from 40% in 2016, according to Chinese customs data.
CORN
The U.S. was China's dominant corn supplier for decades until Beijing approved Brazilian purchases in 2022.
China's imports of U.S. corn fell to $561 million in 2024 from $2.6 billion a year earlier as domestic production increased, according to Chinese customs data.
While China's corn demand has grown over the past decade to support its massive livestock industry, Brazil has rapidly surpassed the U.S. as China's leading supplier.
MEAT AND OFFAL
China is a key market for U.S. exports of chicken legs, pork ears and offal - products for which there is little demand in the United States.
China bought $2.54 billion of meat and offal from the U.S. in 2024, down from $4.11 billion in 2021.
Hundreds of U.S. meat exporters were thrown into administrative limbo earlier this year when China allowed their export registrations to lapse. While some were subsequently re-registered, many beef exporters are still without licenses.
COTTON
China accounts for about a quarter of U.S. cotton shipments in value. Shipments of U.S. cotton into the world's second largest economy stood at $1.49 billion in 2024, down from $1.57 billion in 2023, according to U.S. Census Bureau data, as economic headwinds squeezed demand for textiles and garments.
SORGHUM
China's imports of U.S. sorghum have risen slightly but the country is trying to reduce its dependence on the American feed grain which is mostly used as a corn substitute.
China imported $1.73 billion worth of sorghum from the U.S. in 2024, up from $1.52 billion in 2014.
U.S. sorghum exports to China are facing stiff competition from Australia and Argentina as well as cheaper Brazilian corn.
WHEAT
China imported nearly $600 million worth of U.S. wheat in 2024, the highest in three years. But China has reduced overall wheat imports in recent months amid ample local supplies which is likely to impact U.S. shipments.
