China will hit imports of U.S. soybeans with another 5% tariff from Sept. 1, the country's ministry of finance announced today. It will also hit U.S. beef and pork with 10% levies on that date. U.S. wheat, corn and sorghum with also face added 10% duties from Dec. 15 forward, according the the announcement on the ministry's website.
The move is Beijing's latest response to the threat of more U.S. tariffs on Chinese goods, some of which will take effect next month and some of which have been pushed back to Dec. 15.
Existing tariffs on U.S. ag goods have already curtailed U.S. shipments of soybeans and other ag commodities to a major degree. In the long-lasting trade battle, China has targeted President Donald Trump's farmer base. China had already dramatically curtailed its U.S. bean buys, but today’s action adds to idea the trade war will wage on for some time, which weighed heavily on the bean market today.
Not surprisingly, President Donald Trump lashed out at China via Twitter. “Our Country has lost, stupidly, Trillions of Dollars with China over many years,” Trump said. “They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”
They sent markets reeling just moments after comments from Federal Reserve Chair Jerome Powell had soothed investors’ nerves and helped stocks recover from early declines.
Trump was also unhappy with Powell’s Jackson Hole, Wyoming comments. “As usual, the Fed did NOTHING!” Mr. Trump said in a tweet. “My only question is, who is our bigger enemy, Jay Powel or Chairman Xi?,” the president wrote, a reference to Chinese President Xi Jinping.