China-US trade war heats up as Beijing’s tariffs take effect

China’s tariffs targeting US agricultural products have come into effect in retaliation to President Trump’s decision to increase tariffs on Chinese imports.

The escalation in trade tensions follows Trump's earlier imposition of a 10% tariff on all Chinese goods, which was subsequently raised to 20%. Beijing responded by implementing taxes of 10 and 15% on various US farm products, aiming to affect Trump’s voter base while still providing leeway for future trade negotiations. This ongoing dispute adds further strain to China’s economy, already grappling with sluggish consumer spending and a prolonged debt crisis in the property sector.

Analysts suggest that China’s record-high exports may no longer provide the necessary economic leverage amid growing trade uncertainties. Experts believe the impact of these tariffs is yet to reach full force, though a downward trend in shipments is already apparent.

During a significant political assembly in Beijing, Premier Li Qiang outlined an economic strategy to navigate these challenges, with an ambitious growth target of around 5% for the year, despite looming external and internal pressures.