After Donald Trump’s announcements, China retaliated firmly but cautiously

China announced, in turn, on Tuesday, an increase in customs duties on a number of American products, but not all. Chinese growth could be threatened.

Donald Trump has carried out his threat to heavily tax the products of the first three business partners in the United States on Tuesday, March 4. Imports from Canada and Mexico will now be taxed up to 25%. Strong increase for China. The American president criticizes them for not fighting sufficiently against fentanyl traffic, a drug whose traffic and consumption have exploded in the United States. LIn China replies like never before.

Last month, after a series of new customs duties imposed on Chinese products by Donald Trump, China’s response was quite moderate, almost insignificant. This time, the reaction is clearly firmer. The Chinese have decided to attack a sector that is very close to heart to the American president: agriculture and more broadly, the food industry.

During his campaign, Donald Trump pampered the American farmers a lot. They are the ones who will be the direct victims of the latest Chinese reprisal measures. China has decided to impose additional customs duties on a certain number of productions: 15% more taxes on wheat, corn and American cotton and 10% more on soy, pork and dairy products. The impact will be real because many American farmers export their production to China. In 2024, for example, they sold $ 11 billion in the Chinese soy. China is the second importer of American soybeans.

Should we understand that China is now on a hard line against Donald Trump and his economic policy? Yes and no. On the one hand, China wants to show that it does not intend to let it go and that it replies as soon as it is attacked. Tuesday morning, the Chinese Ministry of Commerce expressed its very dissatisfaction before announcing these additional taxes against American agriculture. But on the other hand, China does everything to avoid a large -scale trade war.

The surcharges decided by Donald Trump concern all Chinese products that are sold in the United States, while Chinese reprisal measures are only relating to certain sectors, a sign that Beijing still hopes to avoid a general escalation with the Americans.

The Xi Jinping regime is aware of the consequences that this could lead to a Chinese economy already in difficulty. Trade relations with the United States represent hundreds of billions of dollars. The risk is to see Chinese growth collapse in the event of worsening of the conflict. We will see Wednesday what signs gives the communist regime, when the annual session of the Chinese parliament is opened. The Prime Minister must give a speech, give the main lines of his economic policy for the coming months and announce the official growth of China growth for 2025.