China imposes 15% tariff on US cotton amid trade war

 

China has imposed a 15 per cent tariff on US cotton imports, escalating trade tensions after the US doubled duties on Chinese goods. The new tariffs, effective March 10, also cover wheat, corn, and chicken, while soybeans, pork, beef, and dairy will face a 10 per cent duty, China’s finance ministry stated.

This move follows the US raising tariffs on Chinese goods from 10 to 20 per cent and imposing a new 25 per cent duty on imports from Canada and Mexico. US President Donald Trump justified the additional duties by citing China’s role in fentanyl production.

Cotton is a key trade commodity between the US and China, and the fresh tariff is expected to impact American cotton farmers significantly. China is one of the largest buyers of US cotton, and higher tariffs could push Chinese mills to source from alternative markets.

In response, Canada has imposed tariffs on US goods worth $107 billion, with a 25 per cent duty on $30 billion worth of imports. Mexico also signalled readiness for retaliatory measures, with President Claudia Sheinbaum stating the country has multiple backup plans if the US follows through with its tariff hikes.