China hits US soya bean firms, halts log imports as it steps up retaliation against Trump tariffs

BEIJING – China suspended on March 4 the soya bean import licenses of three US firms and halted imports of US logs, stepping up retaliatory action after the US imposed additional tariffs on Chinese goods.

Earlier in the day, China also imposed import levies covering US$21 billion (S$28 billion) worth of US agricultural and food products including soya beans, wheat, meat and cotton.

The three US companies affected by the license suspensions are farmer-owned cooperative CHS, global grains exporter Louis Dreyfus Company Grains Merchandising and export grain terminal operator EGT, China’s customs department said in a statement.

Customs said it detected ergot fungus and seed coating agent in imported US soya beans, while the suspension of US log imports was due to the detection of small worms, aspergillus fungus 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’s retaliatory measures were in response to US President Donald Trump’s decision to impose an extra 10 per cent duty on China, effective March 4, resulting in a cumulative 20 per cent tariff in response to what the White House considers Chinese inaction over drug flows.

About half of US soya bean exports are shipped to China, totalling nearly US$12.8 billion in trade in 2024, according to the US Census Bureau.

The suspension of US logs was a direct response to Mr Trump’s move on March 1 to order a trade investigation on imported lumber. Mr Trump had earlier told reporters that he was thinking about imposing a 25 per cent tariff rate on lumber and forest products.

“The announcement of import restrictions on US lumber and soya beans linked with phytosanitary issues follows a long history of similar measures by Beijing,” said Trivium China agriculture analyst Even Pay.

The bulk import volumes and natural origin of soya beans and lumber make them susceptible to issues with plant health and pests, creating a convenient target for trade retaliation, the analyst 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.

Punishing farmers

Additional levies imposed by China earlier on March 4 comprised a 15 per cent tariff on US chicken, wheat, corn and cotton and an extra levy of 10 per cent on US soya beans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports, effective from March 10.

The suspension on the three soya bean 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 Mr 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. REUTERS