The U.S.-China trade conflict is set to enter a new phase of hostilities as Beijing prepares countermeasures against fresh import tariffs imposed by the United States. According to China’s state-controlled Global Times, the Chinese government is formulating responses to the additional 10% tariff on Chinese products set to take effect on Tuesday. With tensions already running high, the escalation raises concerns of an all-out trade war between the world’s two largest economies.
U.S. President Donald Trump announced the additional 10% tariff last week, bringing cumulative duties on certain Chinese goods to 20%. He justified the move by accusing Beijing of failing to curb the flow of fentanyl—a synthetic opioid—into the U.S. However, China’s Commerce Ministry swiftly condemned the new measures, calling them an act of “blackmail.”
In response, Global Times reported that “China is studying and formulating relevant countermeasures” and that these retaliatory steps are likely to include both tariff and non-tariff measures. U.S. agricultural and food products appear to be a primary target for Beijing’s retaliation, continuing a pattern seen in previous rounds of trade disputes.
The move comes at a critical time, as China is gearing up for its annual National People’s Congress (NPC), a key political event where Beijing outlines its economic priorities for the year ahead. The timing suggests that Chinese leaders may use the tariff dispute to reaffirm their economic resilience and their commitment to countering U.S. pressure.
The U.S. agricultural sector has often found itself caught in the crossfire of U.S.-China trade disputes. While China remains the largest market for U.S. agricultural exports, tensions between the two nations have led to significant shifts in trade patterns.
Since 2018, when the Trump administration first imposed tariffs on Chinese goods, Beijing has responded by targeting U.S. farm products. China slapped tariffs of up to 25% on key American agricultural exports, including soybeans, beef, pork, wheat, corn, and sorghum. This move dealt a heavy blow to American farmers, many of whom rely on China as a crucial export destination.
The ongoing trade war has prompted China to diversify its agricultural suppliers, reducing its reliance on the U.S. In recent years, Beijing has strengthened trade relationships with Brazil, Argentina, and other agricultural exporters, securing alternative sources of essential commodities such as soybeans and corn. At the same time, China has ramped up domestic production to bolster its food security.
While some analysts believe Beijing still hopes for a negotiated settlement, signs of an imminent breakthrough are slim. There have been no indications of upcoming trade talks, and the likelihood of a diplomatic resolution is fading. With the U.S. elections approaching, Trump’s administration appears to be doubling down on its hardline stance against China, using trade policy as a political tool.
“Beijing has a history of retaliating decisively when faced with trade pressure from Washington,” said Zhang Ming, an economist at a leading Beijing-based think tank. “The key question now is how severe China’s response will be and whether it will trigger further escalations from the U.S.”
If China follows through with its planned countermeasures, the trade conflict could expand beyond tariffs into broader economic confrontations, including restrictions on U.S. businesses operating in China and increased regulatory scrutiny on American companies.
Trump’s decision to tie the new tariffs to the fentanyl crisis adds another layer of complexity to the dispute. The synthetic opioid has been a major contributor to the drug epidemic in the U.S., and Washington has long accused China of being a primary source of fentanyl-related substances.
Despite ongoing talks between the two countries on controlling fentanyl production and distribution, Beijing sees the U.S. tariffs as an unfair and politically motivated move. Chinese officials argue that they have already implemented stringent controls on fentanyl production, and they view the U.S. tariff hike as an excuse to intensify trade pressure.
“This is not about fentanyl,” said an editorial in the Global Times. “This is another attempt by the U.S. to suppress China’s economy under false pretenses.”
As the U.S.-China trade dispute intensifies, global financial markets are watching closely. Investors fear that further tit-for-tat measures could disrupt supply chains, increase costs for businesses, and slow global economic growth.
Stock markets in Asia showed signs of volatility following news of China’s impending countermeasures, with the Shanghai Composite Index and Hong Kong’s Hang Seng Index both experiencing fluctuations. Similarly, U.S. markets have been sensitive to trade-related developments, with businesses reliant on Chinese imports and exports facing uncertainty.
The agricultural sector, in particular, is bracing for potential fallout. American farmers, who have already suffered from previous rounds of tariffs, could face renewed financial strain if China further reduces its purchases of U.S. farm products.
With the new tariffs set to take effect on Tuesday, Beijing has only a few days to finalize its response. The Chinese government may choose to announce its countermeasures at the National People’s Congress, signaling a firm stance against U.S. pressure.
Alternatively, some analysts believe China may adopt a more strategic approach, implementing countermeasures gradually while leaving room for potential negotiations. However, given the lack of diplomatic engagement, a trade truce seems unlikely in the short term.
As the world watches, the U.S.-China trade conflict appears poised to escalate further, with significant economic consequences for both nations and the broader global economy. Whether the two economic giants can find a path toward resolution remains uncertain, but for now, the prospect of an all-out trade war looms large.
