On Tuesday China suspended the soybean import licences of three US firms and halted imports of US logs, stepping up its retaliation for additional tariffs on Chinese goods. Source: Reuters
China also imposed import levies covering US$21 billion worth of US agricultural and food products including soybeans, wheat, meat and cotton.
The three US companies affected by the licence suspensions are farmer-owned cooperative CHS Inc (CHSCP.O), opens new tab, global grains exporter Louis Dreyfus Company Grains Merchandising LLC and export grain terminal operator EGT, China’s customs department said in a statement.
Customs said it detected ergot and seed coating agent in imported US soybeans, while the suspension of US log imports was due to the detection of worms, aspergillus and other pests.
Beijing is retaliating against US President Donald Trump’s decision to impose an extra 10% duty on China, effective Tuesday, resulting in a cumulative 20% tariff in response to what the White House considers Chinese inaction over drug flows.
The suspension of US logs was a direct response to Trump’s move on 1 March to order a trade investigation on imported lumber. Trump had earlier told reporters that he was thinking about imposing a 25% tariff rate on lumber and forest products.
“The announcement of import restrictions on US lumber and soybeans linked with phytosanitary issues follows a long history of similar measures by Beijing,” said Even Pay, agriculture analyst at Trivium China.
The bulk import volumes and natural origin of soybeans and lumber make them susceptible to issues with plant health and pests, creating a convenient target for trade retaliation, Mr Pay said.
China is one of the world’s largest importers of wood products and the third-largest destination for US forest products. It imported around US$850 million worth of logs and other rough wood products from the US in 2024, according to Chinese customs data.
