The Chinese Ministry of Finance unveiled its response to new U.S. duties that went into effect Tuesday morning, announcing new tariffs beginning next week on agriculture machinery but leaving soybeans and other agricultural commodities unaffected.

In retaliation for the new 10% across all U.S. imports from China, on Feb. 10 Beijing will adopt 15% tariffs on U.S. coal and liquefied natural gas as well as a 10% tariff on crude oil, agricultural machinery, and certain cars and pickup trucks, according to a Ministry of Finance statement.

Plows, seeders, planters, tractors and combines are among the machinery targeted. China is a major market for U.S. soybean exports, which make up more than half of the $29 billion in U.S. ag exports to the country. Commodity exporters had been concerned that a return to tit-for-tat tariff escalations could mean a return to rising Chinese tariffs on U.S. commodities and reduced U.S. sales to the country.  

China is a large producer of agricultural machinery, which serves its own market. For the majority of the machines targeted by the tariffs, the Chinese market makes up less than 1% of U.S. exports. It does, however, import high-end machines, including precise harvest equipment, irrigation systems and grain drying technologies, according to the International Trade Administration. U.S. sales of harvesting and threshing machinery to China, which will be hit by the new tariffs, topped $360 million in 2023, accounting for more than 7% of total U.S. exports. 

The country is also in the midst of a push to increase specific crop yields, which spurred demand for farming equipment after the pandemic, the ITA says.

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Trump told reporters on Monday that he planned to speak with President Xi Jinping “probably over the next 24 hours.” During similar conversations with Mexico’s Claudia Sheinbaum and Canada’s Prime Minister Justin Trudeau on Monday, both were able to stave off impending U.S. tariffs after committing to new border security actions.

In its announcement, Beijing also called out the Trump administration for violating international trade rules.

“The US's unilateral imposition of tariffs seriously violates the rules of the World Trade Organization,” the statement reads. The WTO requires new tariffs to be accompanied by an investigation to determine whether imports are harming domestic industry, as well as a period of public comment where exporters can present their views.

“It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the U.S.,” the statement adds.

China has said it will challenge the new U.S. tariffs at the WTO. But the trade body’s dispute settlement mechanism has been effectively paralyzed since Trump’s first term due to the U.S. blocking appellate body members – leaving the mechanism without an appeals process.