China targets US soybeans, lumber in stepped-up response to Trump tariffs
BEIJING — China suspended on Tuesday the soybean import licenses of three US firms and halted imports of US logs, stepping up its retaliation for additional US tariffs on Chinese goods.
Earlier in the day, China also imposed import levies covering $21 billion worth of US agricultural and food products including soybeans, wheat, meat and cotton.
The three US companies affected by the license suspensions are farmer-owned cooperative CHS Inc, 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 agents in imported US soybeans, while the suspension of US log imports was due to the detection of worms, aspergillus and other pests.
Media representatives for Louis Dreyfus, CHS and Bunge Global, which partially owns EGT, did not immediately respond to requests for comment.
Beijing is retaliating against US President Donald Trump’s decision to impose an extra 10 percent duty on China, effective Tuesday, resulting in a cumulative 20 percent tariff in response to what the White House considers Chinese inaction over drug flows.
About half of US soybean exports are shipped to China, totaling nearly $12.8 billion in trade in 2024, according to the US Census Bureau.
The suspension of U.S. logs was a direct response to Trump’s move on March 1 to order a trade investigation on imported lumber. Trump had earlier told reporters that he was thinking about imposing a 25-percent 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, 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 $850 million worth of logs and other rough wood products from the U.S. in 2024, according to Chinese customs data.
Punishing farmers
Additional levies imposed by China earlier on Tuesday comprised a 15-percent tariff on US chicken, wheat, corn and cotton and an extra levy of 10 percent on US soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports, effective from March 10.
The suspension on the three soybean exporters on top of higher import tariffs will further restrict imports of the oilseed into China.
Beijing’s concerted efforts in recent years to greatly reduce its dependence on US supplies has put it in a stronger position to target US farm goods with less impact to its food security and greater harm to US farmers compared to a 2018 trade war during Trump’s first administration.
China has turned to South American producers, boosted agriculture cooperation with allies and raised domestic production through expanded planting and the use of technology.
