The trade wars between the United States (US) and China have taken a more complex turn with Donald Trump’s re-election to the presidency. The Trump administration, emphasizing economic independence and maintaining its strategy of exerting pressure on China in the global trade arena, imposed additional tariffs on Chinese imports through a decision enacted on February 1, 2025. However, China has not merely interpreted these actions as an economic assault but has also perceived them as an attempt to undermine international cooperation.
At the heart of the tensions between the two countries lies the fentanyl issue. The US has accused China of failing to control the illicit trade of fentanyl and its derivatives, while China has rejected these allegations and called for continued cooperation with the US. The Trump administration, however, did not limit its response to diplomatic pressure; it also activated economic sanction mechanisms. Washington’s imposition of additional sanctions on certain Chinese chemical substances has been perceived by Beijing as a move contrary to the spirit of cooperation.
Initially striving to maintain its image as a “responsible global actor,” Beijing officially entered the retaliation process with a statement from the Customs Tariff Commission of the State Council on Tuesday, March 4, 2025. China announced a 15% tariff on imports of chicken, wheat, corn, and cotton from the US, along with a 10% tariff on soybeans, pork, beef, seafood, fruits, vegetables, and dairy products.[1] These measures signify more than just an economic counteraction.
The primary objective of China’s retaliation is to balance US trade policies not only economically but also diplomatically and geopolitically. Specifically, targeting the agricultural sector—a major economic stronghold in Midwestern states, which form a key part of Trump’s voter base—suggests a strategic move aimed at influencing domestic politics in the US. By restricting imports of soybeans and meat products, China is not only putting economic pressure on American producers but also constraining the Trump administration’s political manoeuvrability. This move underscores how Beijing is orchestrating trade wars in a way that impacts domestic political dynamics, indicating that China’s aim extends beyond the economic realm to influencing the political equilibrium in the US. Through these measures, China signals its resilience against US economic pressures and its ability to challenge the Trump administration domestically if necessary.
Furthermore, the Chinese Ministry of Commerce has added 15 American companies to its export control list and designated 10 additional US firms as “unreliable entities.” These companies will be prohibited from conducting trade with China and from initiating new investments in the country.[2] Restricting US firms from exporting goods to China could have significant ramifications, particularly in critical industries such as technology and defense. The further weakening of economic ties between the US and China may create challenges for sectors in which both economies have high mutual dependency. Through this action, China aims to strengthen its competitive edge against US companies and gain greater leverage in strategic sectors, particularly in high-tech and defense industries. This move is not merely a short-term economic reaction but also a long-term geopolitical strategy aimed at shaping global trade dynamics in its favor. China may be positioning itself to surpass the US and assert greater influence over the global economy. In doing so, Beijing is also escalating pressure on Washington to decouple economically.
China’s strategic moves also highlight its broader ambitions for reshaping the global trade order. Beyond economic expansion, Beijing is actively taking concrete steps to redefine the rules of international trade. A deeper economic decoupling from the US would reinforce China’s efforts to establish a new global trade system on its own terms, diminishing Washington’s influence in global markets.
Statements from Chinese Foreign Ministry Spokesperson Lin Jian further illustrate that China’s stance is not merely economic but also ideological. Jian emphasized that China “will never bow to bullying” and framed the trade wars as not just an economic dispute but a direct challenge to US global hegemony.[3] This rhetoric reveals that China is not just an economic rival but also an actor striving to build an alternative global order.
In conclusion, China’s retaliatory measures against the US go beyond simple economic counteractions and aim to generate broader repercussions on the global trade order. By issuing symmetric responses to US trade policies, Beijing highlights inequities in the global trade system while simultaneously exerting economic and geopolitical pressure on Washington. Targeting agriculture and technology sectors suggests a deliberate strategy to undermine Trump’s domestic political standing. This process also solidifies China’s position not just as an economic player but as a power seeking to establish an alternative global system. As economic decoupling between the US and China deepens, Beijing’s global influence will likely expand, further complicating Washington’s economic strategies.
[1] “China and Canada immediately retaliate against Trump’s tariffs. Mexico is next”, CNN, https://edition.cnn.com/2025/03/04/economy/trade-mexico-canada-china-tariffs-trump-hnk-intl/index.html?iid=cnn_buildContentRecirc_end_recirc, (Date Accession: 06.03.2025).
[2] “China slaps extra tariffs of up to 15% on imports of major US farm exports and adds trade limits”, AP News, https://apnews.com/article/china-us-tariffs-farm-soy-trump-7442b02ac829347f0d4fc6ad0955d368, (Date Accession: 06.03.2025).
[3] Ibid.
