By Mei Mei Chu
BEIJING (Reuters) – Since the U.S. and China imposed tit-for-tat tariffs in their trade war during Donald Trump’s first presidential term, Beijing has taken steps to reduce its reliance on American farm goods in a wider effort to bolster its food security.
That has put China in a better position to withstand tariffs of at least 60% on Chinese imports threatened by Trump, set to return to the White House in January, raising the prospect of Chinese retaliation again targeted at U.S. agricultural goods.
In his first term, Trump slapped duties on $370 billion worth of Chinese goods. Beijing retaliated with tariffs of up to 25% on over $100 billion worth of U.S. products, targeting soybeans, beef, pork, wheat, corn and sorghum.
In the years since, the share of China’s soybean imports from the U.S. – the top American export to China – has dropped to 18% in 2024 from 40% in 2016, according to Chinese customs data, as China has turned instead to imports from Brazil, which has also replaced the U.S. as China’s top corn supplier.
China’s agriculture imports from the U.S. declined to $34 billion in 2023 from $43 billion in 2022, and are expected to drop further this year, according to Chinese customs data.
The following details China’s efforts since the trade war with the U.S. to diversify agriculture supply sources, boost local production, and bolster food security:
Aug. 5, 2019: China halts purchases of U.S. agricultural products in retaliation against tariffs imposed by the Trump administration.
Jan. 16, 2020: Trump and China’s then-Vice Premier Liu He sign a “Phase One” trade agreement where China agrees to raise purchases of American goods by $200 billion over two years, including $32 billion in agriculture products.
2021: China launches commercial trial planting for genetically-modified corn and soybeans.
April 29, 2021: China adopts anti-food waste law to prevent grain wastage and bans binge-eating videos and excessive leftovers.
Feb. 1, 2022: U.S. trade official says China failed to meet its commitments under the “Phase 1” trade deal that expired at the end of 2021. Agriculture Secretary Tom Vilsack tells lawmakers that China’s purchases of U.S. farm goods fell short by about $13 billion.
Feb. 4, 2022: China allows imports of wheat and barley from all regions of Russia, the world’s biggest wheat exporter.
March 7, 2022: President Xi Jinping tells political advisers: “China must rely on self-reliance and feed itself … If we can’t hold our own rice bowls, we will be controlled by others … Food security is a strategic issue.”