China announced import tariffs on $21 billion worth of U.S. agricultural and food products, including soybeans, wheat, meat, and cotton. The companies affected by the suspension are CHS Inc., Louis Dreyfus Company Grains Merchandising LLC, and EGT. According to China’s customs department, the suspensions were due to the detection of ergot and seed coating agents in U.S. soybeans and pests in U.S. logs.
This action follows U.S. President Donald Trump’s decision to implement an additional 10% duty on Chinese goods, resulting in a cumulative 20% tariff. The U.S. cited Chinese inaction over drug flows as the reason for the increased tariffs. Approximately half of U.S. soybean exports, totaling nearly $12.8 billion in 2024, are shipped to China. The suspension of U.S. logs is a direct response to Trump’s order for a trade investigation on imported lumber, with the president considering a 25% tariff on lumber and forest products.
Agriculture analyst Even Pay from Trivium China noted that the large import volumes and natural origin of soybeans and lumber make them susceptible to plant health and pest issues, making them convenient targets for trade retaliation. China is one of the world’s largest importers of wood products and the third-largest destination for U.S. forest products, importing around $850 million worth of logs and other rough wood products from the U.S. in 2024. In addition to the soybean and log suspensions, China imposed a 15% tariff on U.S. chicken, wheat, corn, and cotton, and an extra 10% levy on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy imports, effective from March 10.
China’s efforts to reduce its dependence on U.S. supplies have strengthened its position to target U.S. farm goods with less impact on its food security and greater harm to U.S. farmers compared to the 2018 trade war during Trump’s first administration. The country has turned to South American producers, boosted agricultural cooperation with allies, and increased domestic production through expanded planting and technology use.