The Chinese government decided on 4th to suspend imports of soybeans exported by three U.S. companies and U.S. lumber.
The General Administration of Customs of China announced on its website that residues of fungus and seed coating agents were detected in U.S. soybeans, stating that it is to protect the health of Chinese consumers and ensure the safety of imported food under China's Food Safety Law and related regulations of the World Trade Organization, it will halt imports of soybeans from CHS, Louis Dreyfus Company, and EGT.
Regarding the suspension of lumber imports, the General Administration of Customs noted that quarantine-target pests such as wood-boring beetles and sky beetles were found in U.S. lumber. As a result, imports of U.S. lumber were halted from that day in accordance with the relevant provisions of the Animal and Plant Quarantine Act.
Earlier, the China State Council's Tariff Commission announced at 1 p.m. (local time in China; midnight on the 4th Eastern U.S. time) that the tariffs on 29 items, including U.S. chicken, wheat, corn, and cotton, will be increased by 15%, while tariffs on 711 items, including sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products, will be raised by 10%. This tariff measure will take effect on the 10th.
This is in retaliation against the '10+10% tariff increase' of the Trump administration. China plans to impose an additional 10-15% tariff on U.S. products subject to this retaliation, noting that the existing customs, tax cuts, and exemption measures will not disappear, but additional tariffs cannot be avoided.
China's Ministry of Commerce filed a complaint against the United States with the World Trade Organization (WTO) dispute resolution mechanism simultaneously with the announcement of the State Council's retaliatory tariffs, just as it did last month.